First of all where's the link for this article?
According to the article from OP that says:
"Economists have long warned that the U.S. consumer was on an unsustainable spending frenzy and that savings rates were dangerously low. Now, families are being forced into financial responsibility by the housing downturn and a weakening economy."
This statement is pretty much true because people hardly notice the rising price on virtually everything. The spending has reduced due to their consciences that the priority has shifted from luxury to necessities. That means the effect usually coming from, well, the pump basically.
All around us including housing, banking, food and other thing you can name are affecting us, so just to end this by sayin we're in a squeeze.