The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: andiron who wrote (65663)	7/9/2006 12:30:34 PM
From: mishedlo	Read Replies (1) of 110194

That is indeed the key point So, in order to generate nominal GDP growth of US$751 billion, in 2005, total credit market debt had to increase by US$3,340 trillion - 4.4 times faster than GDP. Take it one further and see how many jobs were created in the US as a result. Of course it was not a zero sum game as I was told. Indeed, we created far more jobs in China and India than we did here. But how sustainable is either job growth in the US when that is what it takes to produce jobs here. And even though we are creating jobs, wages have not come close to keeping up with cost of living. Once housing goes off the deep end, lets see where the fuel for job creation comes from in the US. The only source that I can see is the government. The solution is not what anyone wants to hear: Lower prices Lower wages in the US Higher wages in China At current differentials it is going to take a hell of a long time to correct itself and it will be fought long and hard by the Fed, delaying the inevitable. Mish

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next