An example of deleveraging

I would like to use my neighbor example to illustrate an example of deleveraging.

My neighbor used to own only a Mercedes. When his children started working, each of them owns a luxury car. I saw a BMW, Sports car, a Toyota Camry, a sports utility vehicle, a 7-seater 2-litre car etc. After the financial crisis in year 2008, many luxury cars disappeared in the blink of an eye and are replaced by a 2nd hand vehicle. A year later, even the house was sold.

This is an example of deleveraging.

I suspect the past 6 years of excesses in cars, houses, will go through this process of deleveraging.