Spending Our Way to Disaster (CNN.com): “The American consumer has become deeply addicted to spending, running up ever higher levels of debt in order to live in a fashion that is beyond his means. And the world has become equally addicted to the consumer continuing to burn through cash. It’s a dangerous situation -- potentially a bubble that dwarfs even the U.S. asset bubble that burst in 2000 -- and it will be a challenge for policy-makers to keep it from ending badly. The perseverance of consumer spending over the past several years is credited with keeping the economy afloat, but it didn’t come without consequence. In order to keep on living in the manner they became accustomed to during the boom years, Americans went deeply into hock. 1990s Boom ‘stunting world growth’ (BBC.com): “The world economy is still trying to shake off the hangover of the late 1990s boom years - and there is little prospect of a sustained recovery in the near future. That is the stark message of United Nations’ annual report on trade and development.” The UN Report (by Rubens Ricupero): Overview and Full Report (which ends up, no surprise,recommending lower interest rates, more “public investment, a more use of “policy space than is current being used” (p. 147).Awash in Debt
Spending Our Way to Disaster (CNN.com): “The American consumer has become deeply addicted to spending, running up ever higher levels of debt in order to live in a fashion that is beyond his means. And the world has become equally addicted to the consumer continuing to burn through cash. It’s a dangerous situation -- potentially a bubble that dwarfs even the U.S. asset bubble that burst in 2000 -- and it will be a challenge for policy-makers to keep it from ending badly. The perseverance of consumer spending over the past several years is credited with keeping the economy afloat, but it didn’t come without consequence. In order to keep on living in the manner they became accustomed to during the boom years, Americans went deeply into hock. 1990s Boom ‘stunting world growth’ (BBC.com): “The world economy is still trying to shake off the hangover of the late 1990s boom years - and there is little prospect of a sustained recovery in the near future. That is the stark message of United Nations’ annual report on trade and development.” The UN Report (by Rubens Ricupero): Overview and Full Report (which ends up, no surprise,recommending lower interest rates, more “public investment, a more use of “policy space than is current being used” (p. 147).All Rights Reserved ©
