Source: Geoff Colvin, Fortune Magazine (CNNMoney.com)

We made it through the bursting of the Internet bubble and now the bursting of the real estate bubble. Next we may be approaching the end of the most worrisome bubble of all: the standard-of-living bubble.

That conclusion comes from the latest data on credit card debt. It’s growing fast, but the problem is bigger than that - and to understand what it means, we have to take a few steps back.

For the past several years, the average inflation-adjusted total pay of American workers hasn’t been increasing. That means we haven’t been building a foundation for increases in our living standard. You might be tempted to say that by definition our living standard couldn’t have increased, but that’s not quite right. Even with stagnant real incomes, we can always live a little better every year through borrowing and pretending that our living standard is still rising, just as it was for decades.

Read Full Article: The next credit crunch