This may seem like "no sh*t" statement, but there is so much economic analysis that breaks basic macroeconomic accounting. [more]
regarding the balance sheet recession we are in. The US economic situation is much more like Japan's that it is like Greece's. [more]
Hopefully I can preempt a lot of flak that will likely come this way. I am just thinking out loud here. I am not trying to advocate anything in this post, but rather I have been thinking off and on about this for the better part of a year and I recently came across a video by Prof. L. Randall Wray that has made me think about this idea a little more seriously. [more]
Very good post by Edward Harrison at Credit Writedowns. Goes along with the theme of the balance sheet recession that I have been writing about recently. [more]
This is just awesome! [more]
This goes along with my last post. Household debt is still very high historically. However not only do we have an *average* household debt problem, but because of the growing income gap the debt problem is mostly in the middle income range of American's (Main Street). [more]
Excellent post by TPC. He points out that consumers are still deleveraging, and I think that is exactly what needs to happen. He does clarify that in addendum 1 at the end.
I am not posting this to advocate any particular policy response, but to point out a trend. If the US government were to follow an austerity path then this contraction in consumer debt would continue (probably mostly by defaults instead of paying down of debt), but the economy (which is still heavily driven by the consumer) would collapse at the same rate if not faster. This has absolutely nothing to do with QE. Consumers are deleveraging and will continue to do so whatever the Fed thinks the 'appropriate' monetary policty will be. What will affect the rate of consumer deleveraging is fiscal policy targeted at Main Street, not Wall Street. That is what should be paid attention to here.
As investors who pay attention to the macroeconomy, this is bears watching closely. [more]
Excellent thoughts from TPC. [more]
No surprise at all [more]