Household Debt Levels on the Rise

With the release yesterday of the Fed's Flow of Funds report, we caught a glimpse in what could be a turnaround in private sector debt levels.  Since 2008 we have witnessed a huge de-leveraging of the private sector.  This de-leveraging was much needed as the private sector had accumulated way too much debt.  What the de-leveraging did however was reduce the amount of spending by the private sector.  With the consumer showing some signs of wanting to spend again could this be a sign to the Fed that tapering should commence? 

The way I see things, rising debt levels alone should not be a driver in determining if the economy is turning around.  What we should be looking at are income levels and those are not on the rise.

Household median income is not rising.  As a matter of fact it is dropping.