Hi Peacemaker
Fundamentally, in answer to your question - UK consumers borrow(ed) way more than their means to fund a lifestyle which was bound to come crashing down. And it did. People in the UK owe more on their credit cards than the whole of the European (EU) countries COMBINED! in short, they were spending money that they didn't have. The programs you see on TV and the re-model shows etc are just TV shows, they dont portray reality in terms of money and what people are doing to their homes. Usually, the big fancy TV show families wanting a pad in europe and have £750,000 budgets are the very top level of UK families etc, they most certainly are NOT 'average UK consumer'
I'd also say that per capita terms, there's vastly more US people driving new cars, buying new furniture and furnishing and remodelling their homes to an extent than the UK. I think you are also deluded if you think the UK's quality of life is going up and up and up, when the various independant research groups show the opposite in the world rankings year to year.
There are plenty of financially savvy UK people, couples and familes, when you plan and are good with your income and expenses, of course you can go out and visit the pub and take mini breaks etc, it's just a vast majority of those who were doing that, were simply putting on the credit card and then not bothering to pay it back.
I'd suggest you shift your focus away from the TV shows and look on financial based sites like moneysavingexpert in order to get more of a realistic picture of UK finances from the personal viewpoint. You'll be shocked!
As for the special relationship, it 'could' be a viewpoint that it'll always be special, even if current issues and priorities mean attention and focus is elsewhere. Economically, I'd say currently thats true, the US needs to be fixing it's economy and it's own issues to then be seen to recover from the economic meltdown to prove it can survive. The UK will of course follow, eventually and then there'll be an article saying the special relationship is alive and warm etc, as some of the big hurdles will have been woeked out at least and US & UK can cosy up again a little more.
Cheers, DtM! West London & Slough UK!