Let’s start here then with the crux of the issue: debt.
Deep recession rooted in structural issues
Back in my very first post in March of 2008, I said thatthe U.S. was already in a recession, the only question beinghow deep and how long– a question I answered in the next post saying “we are definitely in recession. And according to Gary Shilling, this recession is going to be a big one. Worse than 2001, 1990-91 or the double dip recession of 1980-82.” This has certainly turned out to be true. The issue was and still is overconsumption i.e. levels of consumption supported only byincrease in debt levelsand not by future earnings. This is thecore of our problem – debt.
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