Christmas spending was way up this year but do you think it's due to people putting themselves further in debt?

Yes I do think the same as you. For some reason most people are always trying to impress. I think Americans have been in such a low point for so long now they spent money this Christmas to make themselves feel better, to boost their spirits. But in a long run will hurt themselves even more. I bet you as early as today December 26, 2010 many are having buyers remorse especially when gift exchanges don't come close to matching what you have spent.