However, U.S. consumers continued to increase savings and reduce household debt in the face of negative wealth effects. (nreionline.com)
I've argued that the combination is important and complementary: monetary policy lowers the cost of borrowing but if households are both deleveraging and, based on the loss of housing wealth, suffering from lower net worth (i.e., a negative wealth effect), they're less likely to take advantage of those lower rates. (jaredbernsteinblog.com)
The real key here is to determine the implications from a negative wealth effect. (discoveryinvesting.com)