Quote:
Originally posted by nostatic
can someone please explain to me how a huge deficit combined with record consumer debt combined with huge trade deficit combined with record energy prices can be "healthy"?
I totally serious. No pithy comments or cartoons pasted from somewhere. Please tell me what is healthy about this scenario? And I'm not saying Kerry can fix it...just please tell me how it is the economy is currently healthy.
|
Uncharacteristically grounded there...
Scenario has been healthy in a similar way that the California real estate market has been healthy - or the lead up to the bursting of the tech bubble was healthy.
You can nay say and doom predict all you want - you just get laughed at so long as the scenario sustains itself. And it will - there's always a "greater fool" next door who will borrow more to buy your tech stock/california real estate/new car at a greater price than you - no worries.
But an end has to come. It's not rocket science that real property values (or growth in any other economic measure) cannot increase
sustainably at a rate greater than growth in real income. Real income is that pesky thing called GDP.
Like musical chairs - just don't be left standing when the music stops.
And it will stop.
Soon.
Trust me.