Monday, January 12, 2004

Put It On the Tab

We are just setting records all the time. All time highest budget deficit, highest government debt level, highest trade deficit, lowest valuation of the dollar vs Euro... And now the US has for the first time ever surpassed $2 trillion in consumer debt. Yay for us! Consumer debt levels have doubled since late 1994. In light of all these numbers, how people can think we are in the beginning of a real economic recovery is beyond me. It may be that we are starting to see the split occur between the US economy and the stock market which covers an increasingly internationalized portfolio. I think we've discussed this before, and it is also mentioned in the Brookings discussion. As multinationals become more internationally based, it allows the stock market to perform well even as the US economy goes in the toilet.

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