Quote:
Originally Posted by peter12
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.
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Well I don't buy the 'this time is different' talk, so maybe that is where we have a distinct point of departure. But let's say you're right and there is no recovery, or its driven by spurious factors. Why would people be wise to invest?
I don't mean that as in what's the point (it's how I make a living after all), but if things are as bad as you say, and the outlook as gloomy as you predict, you would best to keep the money in your mattress, right?