Quote:
Originally Posted by The Reaper
It is not just consumer sentiment, consumers are so heavily in debt after the spending spree of the 00's (on CCDs, home equity loans, etc.) that most people cannot buy more, even if they wanted to. Their credit is too far overstretched already.
It is highly unlikely that this recovery will be consumer (or now military) spending driven. Taxes and regulations make expanding businesses or employment imprudent at this point. Not sure how the POTUS thinks he is helping, other than the Cloward-Pliven plan to bring the system down by bankrupting it.
TR
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Spot on.
There is also a demographic issue affecting the economy.
The boomers are preparing for/ transitioning into retirement.
There is plenty of scaling down of lifestyles and deleveraging by the boomers which is not being offset by generations X and Y.
The "total personal debt" section of the debt clock is still contracting:
http://www.usdebtclock.org/
The structural problems cannot be laid at the feet of recent administrations.
However, the stupid policies which exacerbate the problem can be.