>>"Household debt as a percentage of GDP was "just" 46% back in 1983--that was the last time the unemployment rate was 10%. Today household debt is 96% of GDP."
You explained very well why low interest rates in the US will not ignite the economy for anyone but speculators. American households are already pinned down with large debt service commitments.
The path out is narrow and long and slow. Americans need to pay down debt, not take on more. Any recovery is going to be paid for out of individual savings that are then invested in local businesses, and not out of new borrowing. This remedy relies on Americans to be patient and sensible, which they are not known to be.
If you've already mortgaged one of your legs to the debt collectors, you don't make your other leg the collateral for a second line of credit. You better limp along on your one good leg for as long as it take to shake that debt crocodile off your other leg.
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