Speaking of debt: DEBT, DEBT, DEBT Consumer debt, bank debt, mortgage debt, government debt are at levels we have never seen before, even in relation to GDP, with perhaps the only time we were close being during World War II ((at least in terms of public sector debt). This is a major problem!
“The Entitled Society”-- pretty amazing. I suspect many older Americans are so fearful of this nuveaux moral fabric, this complacency, this by definition “We are the United States, of course everything will be fine” attitude. In a society where consumer spending accounts for 70% of economic growth, one can see just how vital a healthy and willing consumer is to the system. Unfortunately, the consumer spending numbers that we are using as our ‘normal’ reflect one off-deviations from the drivers of such spending, namely job and income growth. They stand belly out, belt unbuckled, after home equity loans, signature loans, car loans, mortgages, all of it. As the consumer continues to nurse its hangover and realign its balance sheet, consumer spending will remain soft, slowly contracting back to a new normal level that more properly corresponds to income.