http://bonddad.blogspot.com/2013/08/will-wealth-effect-lead-to-increased-us.html
As I noted last week, I'm pretty sanguine about the US economy. Despite
some decent ISM numbers last week, we're facing a third year of
budgetary stupidity in Washington. When this is combined with the weak
reading in US GDP over the last three quarters, I don't see much beyond a
subdued (or should I say "moderate") expansion.
But we may have a wild card in the mix. Although overall pay growth has
been fairly paltry this expansion (which is what you'd expect in a 7%+
unemployment environment) US consumers now have room to increase their
revolving credit levels to power consumer spending.
Consider this chart of household (and non-profits) net worth:
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