Six Fundamental Realities
- Private Sector Deleveraging And Government Policy Responses
- Rising Protectionism
- Grand Disconnect Between Markets And Economy
- Zeal For Yield
- End Of Export Driven Economies
- Equities Are Vulnerable
Private Sector Deleveraging And Government Policy Responses
Household deleveraging is far from over.
There is most likely at least 5 more years to go. However, it could be
longer given the magnitude of the debt bubble. The offset of the
household deleveraging has been the leveraging up of the Federal
government.
The flip side of household leverage is
the personal saving rates. The decline in the savings rate from the
1980’s to 2000 was a major boost to economic growth. That has now
changed as savings rate are now slowly increasing and acting as a drag
on growth.
However, American’s are not saving
voluntarily. American’s have been trained to spend as long as credit is
readily available. However, credit is no longer available.
Submitted by Tyler Durden: For 727 editions, and nearly 30 years, Bill
Buckler, the "captain" of the free market-praising Privateer newsletter
provided a welcome escape from a world overrun with "free-lunch" economists, "for-hire" politicians, "crony-capitalist" oligarchs, "heroin-addict" bankers, "the-solution-to-record-debt-is-more-record-debt"
Keynesians, and all those other subclasses of that species which
Einstein, or whoever, described so aptly in saying that they all expect a
different, and happy, outcome when applying the same flawed methods
over and over. And for 30 years, Buckler's steadfast determination and
adherence to his arguments, beliefs, reasoning and ironclad logic
brought him countless followers, all of whom are now able to see past
the bread and circus facade of a world every day on the edge of
political and social collapse. Sadly, all good things come to an end,
and so does The Privateer.
