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While consumer spending once helped keep the economy healthy, rising consumer debt is the reason it’s getting sick. The root cause of the current economic slowdown in the U.S. goes back several decades, according to an economics professor at Washington University in St. Louis.

Mortgage woes could get worse thanks to easy credit.If it seems as though sub-prime mortgage loans stirred up trouble in the financial markets, just wait until debt problems spill over onto household spending. America’s love affair with spending could trigger the most severe downturn in economic activity seen since at least the 1980s — and possibly since the Great Depression.

December is the month when most people scramble to find gifts for their friends and family. In the process, many decide to treat themselves to a gift as well — especially when they notice that something they’ve wanted is now on “sale.” According to a business professor at Washington University in St. Louis, most people have an easier time justifying an indulgent purchase when there is the promise of saving money, especially when it is in the form of an unexpected discount or rebate. The catch is that frequently customers aren’t saving as much money as they might think. More…