John Markman of MSN was very vocal in an interview on Tech Ticker today in which he argued that the bears are wrong about the economy because the US consumer is re-leveraging. Of course, regular readers know that I have long argued that the consumer is not ready to run with the economic recovery baton due to the continuing deleveraging that needs to take place. With a $1.5T hole in their balance sheets the US consumer is unlikely to begin borrowing money again en masse.
Markman is correct that we are seeing more signs of consumer stability and maybe even a slight pick-up in borrowing, however, I would argue that a re-leveraging of the consumer is far from a good thing and would in fact do nothing more than take us back to the same environment that got us into this mess to begin with. We need real organic economic growth, job growth, wage growth and continued consumer frugality in order to lay the foundation for a sustained long-term recovery. More of what got us here is not a good thing. Is the US consumer really re-leveraging? Let’s hope not.
Full interview follows:
Source: Yahoo Tech Ticker
The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.
Be nice. Keep it clean. Stay on topic. Comments/names with multiple links will get caught in the spam filter!
Name
Mail (will not be published)
Website (optional)
You can use these tags:<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.
Notify me of follow-up comments via e-mail
© 2009 pragcap.com · Login.
John Markman of MSN was very vocal in an interview on Tech Ticker today in which he argued that the bears are wrong about the economy because the US consumer is re-leveraging. Of course, regular readers know that I have long argued that the consumer is not ready to run with the economic recovery baton due to the continuing deleveraging that needs to take place. With a $1.5T hole in their balance sheets the US consumer is unlikely to begin borrowing money again en masse.
Markman is correct that we are seeing more signs of consumer stability and maybe even a slight pick-up in borrowing, however, I would argue that a re-leveraging of the consumer is far from a good thing and would in fact do nothing more than take us back to the same environment that got us into this mess to begin with. We need real organic economic growth, job growth, wage growth and continued consumer frugality in order to lay the foundation for a sustained long-term recovery. More of what got us here is not a good thing. Is the US consumer really re-leveraging? Let’s hope not.
Full interview follows:
Source: Yahoo Tech Ticker
The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.
Be nice. Keep it clean. Stay on topic. Comments/names with multiple links will get caught in the spam filter!
Name
Mail (will not be published)
Website (optional)
You can use these tags:<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.
Notify me of follow-up comments via e-mail
© 2009 pragcap.com · Login.
John Markman of MSN was very vocal in an interview on Tech Ticker today in which he argued that the bears are wrong about the economy because the US consumer is re-leveraging. Of course, regular readers know that I have long argued that the consumer is not ready to run with the economic recovery baton due to the continuing deleveraging that needs to take place. With a $1.5T hole in their balance sheets the US consumer is unlikely to begin borrowing money again en masse.
Markman is correct that we are seeing more signs of consumer stability and maybe even a slight pick-up in borrowing, however, I would argue that a re-leveraging of the consumer is far from a good thing and would in fact do nothing more than take us back to the same environment that got us into this mess to begin with. We need real organic economic growth, job growth, wage growth and continued consumer frugality in order to lay the foundation for a sustained long-term recovery. More of what got us here is not a good thing. Is the US consumer really re-leveraging? Let’s hope not.
Full interview follows:
Source: Yahoo Tech Ticker
The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.
Be nice. Keep it clean. Stay on topic. Comments/names with multiple links will get caught in the spam filter!
Name
Mail (will not be published)
Website (optional)
Read Full Article »