Little cushion

An IMF study reported on by The Huffington Post today should give all of us pause. Americans are buried in debt and, because of it, may be just one step away from financial catastrohe.

Today, Americans owe some $704 billion in credit card debt, and more than that in both auto loans and student borrowing.

Many Americans may not even realize the extent to which debt underpins their lifestyle. A number of analysts argue that many Americans who consider themselves middle class are in fact leading a precarious, over-leveraged existence, with few savings and little financial cushion in case of emergency.

Think about it. Most of us are just one health emergency -- cancer, a heart attack, some disabling injury, a lost job, a fire, etc. -- away from losing everything and ending up on a relative's couch, or in a tent in the woods.