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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: gpowell who wrote (50607)	1/22/2006 7:11:00 AM
From: shades	Respond to of 110194

stpetetimes.com Biz bits By wire services Published January 22, 2006 -------------------------------------------------------------------------------- OUTGOING FED CHAIRMAN Alan Greenspan has been lauded for the nation's economy. But the Economist says it's in "a much less healthy state than is popularly assumed (and has) the biggest economic imbalances in American history." The magazine says the main reason for America's recent growth was the Fed holding interest rates negative for several years. And by borrowing against the value of their homes, Americans have been able to consume more than they earn, boosting the economy, "but at the cost of a negative personal saving rate, a growing burden of household debt and a huge (trade) deficit." When home prices level off, consumer spending will stumble, and the magazine predicts a sharp economic slowdown.