We can all now see that our banks lent more than was safe and mademost of their profits from business models that turned out to beunsustainable when the bubble burst. British banks became amongst themost indebted, most leveraged in the world, with tangible assets thirtynine times tangible equity compared to seventeen times in US banks. Butas an economy we weren't saving enough to fund this debt. So our banksand shadow banks sucked in hundreds of billions of pounds from abroad.As a country, we lived beyond our means. Our banks borrowed moneyfrom China to lend to us, so we could buy the goods the Chinese produced.We could see it in the huge current account deficit that persisted for adecade.But it was explained away with talk of a new paradigm of low inflation,stable growth and the end of 'boom and bust'.For a while almost everyone was persuaded, and even amongst thesceptics almost nobody put the whole picture together.As I said in my speech to the Conservative conference here in Birminghamlast year, "we forgot that an economy built on debt is not an economybuilt to last." Or as Warren Buffet puts it more colourfully, it is only whenthe tide goes out that you see who has been swimming naked. The truth was that Britain's economic growth of the last decade was aboom founded on an unsustainable current account deficit which itself waslargely driven by unsustainable growth in consumer spending across theboard.Many consumers funded this spending boom not from earnings or savings,but borrowing - often borrowing secured against the value of house priceswhich themselves were booming on the back of cheap credit. The result is that by the time the boom turned to bust, our householdswere the most indebted of any major economy, more even than America's,with debt to income standing at 175% for the average British familycompared to 140% for the average American family. The huge losses suffered by our banks from UK mortgages and consumerloans that are now turning bad are a reflection of that unsustainableconsumption. A stark illustration of just how much the economy wasreliant on unsustainable consumption growth is that if consumer spendinghad merely grown in line with incomes over the decade between 1998 and2007, average growth would have been 0.7% lower. Every year. That may not sound much at first, but it means that our GDP would havebeen about 7% lower - £100bn lower - in 2007. That's more than £4,000for every household in the country. And now those debts are being calledin.Of course it wasn't just consumers.