The US Is Broke:
"What holds the economy together is the heroic spending of the homeland consumer. But what is he spending? The BBC reports that Americans are earning less money this year than last - the median household income fell 2.2% to $42,228. The only way he could possibly increase his spending would be by borrowing money.
Not surprisingly, the two consumer sectors that have shown the most growth - autos and housing - are those where financing is most relaxed. But even these two lend-happy industries seem to be breaking down. Auto sales are slipping and housing is looking weaker and weaker.
In the end, you cannot build real prosperity on debt, the Austrians tell us; you have to build on savings. That is a lesson that needs to be relearned every three generations or so. Unfortunately, the tuition can be painfully expensive."
-from The Daily Reckoning
[CULT OF THE DEAD COW]
6:05:49 PM 
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