Posts Tagged ‘savings rate’
The Economic Process of Deleveraging Part Two – Why the US is Well Positioned
The differences between the US situation post-financial crisis and Japan in 1990 are stark. The previous post outlined how extreme things got in Japan and how ahead of itself the Japanese stock market, real estate market and economy got. While Japan was exposed to “extreme extremes” the US economy experienced imbalances that could be worked…
Read MorePersonal Savings Rate – Lowest Since 2007!
The personal savings rate is an item of contention and debate as the profligacy of the US Consumer has been in focus throughout the 2000s decade. During the height of the housing market boom, the savings rate got down to zero and at times was even negative. US Consumers in the aggregate were thought to…
Read MoreExcesses Cause Recession – A Comparison of 2008 and 2011
Recessions are typically caused by some sort of an excess. Real economic activity stretches too far and the subsequent unwind causes a retrenchment via a sudden and abrupt change in business and household behavior. There have been a number of excesses that have built up in the global economy over the past couple of decades.…
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