Quote:
Originally Posted by Slava
I don't know how to respond to these things. First you say there is no recovery. Then you say it's a jobless recovery. Now you say that there is a recovery and people are working two jobs and spending too much money.
So, long story short, there is in fact a recovery. Will it go forever? Clearly not, but that's the business cycle. It winds up where people are over-leveraged and the economy contracts again.
|
It all makes sense. Very clear sense. This so-called recovery is driven by gauzy employment numbers, increasing costs of living, high spending driven by low interest rates, and the virtual disappearance of the lower middle class.
We are seeing something new that is not explainable by traditional economic models. There is no business cycle anymore. Increasing technological returns have changed everything.
As for my previous comment, it would be a good idea for middle earners to stop spending so much money, and start putting as many assets into investments. That is the only reliable source of stability in this economy. The labour market sucks, and I don't see that changing for a long time.