burying your head in the sand in the face of economic thin ice

[OS]

Needles to say, my message has not been received with open arms as I travel through this region. Most Asians react with sheer disbelief when I even dare to mention the possible demise of the American consumer. Never mind the juxtaposition between excess US consumption and subpar wage income generation: Consumer outlays have surged to a record 71% of GDP since 2002 versus a 67% norm over the 1975 to 2000 period, while real private sector wage and salary disbursements are up only 5% in the first 39 months of this recovery versus a 15% average increase in the five previous cycles. Nor do Asians want to hear about the excesses of the household debt cycle -- in terms of the record stock of indebtedness as a share of GDP as well as debt service payments that are near historical highs in an historically low interest rate climate. Believe it or not, one client out here was so angry with me he actually tore my chart of the vanishing personal saving rate into tiny little pieces. Asians want to believe that the income-short, saving-short, overly indebted, asset-dependent American consumer will never stop spending.

link

Stephen Roach is an economist at Morgan Stanley.

Basically all the asian economies are export driven and their livelihood depends on credit card happy American consumers.

 

[So]

This really should go in P&N.

 

[SynthDude2001]

Originally posted by: So
This really should go in P&N.

QFT

 

[OS]

Originally posted by: So
This really should go in P&N.

I tried that a couple times and no one there really seems interested in economic discussions. :

 

[So]

Originally posted by: OS

Originally posted by: So
This really should go in P&N.

I tried that a couple times and no one there really seems interested in economic discussions. :

Well, I'm not in the mood to get mad and yell at others ATM.

The morning crew can wrangle over it. They seem to like to get their panties in a bunch.

 

[Lonyo]

Originally posted by: OS

Originally posted by: So
This really should go in P&N.

I tried that a couple times and no one there really seems interested in economic discussions. :

Try starting an economic flame war.

Put something like "Bush is collapsing the world economy" and you'll get some replies.

 

[SynthDude2001]

Originally posted by: So
The morning crew can wrangle over it. They seem to like to get their panties in a bunch.

So true. That's why I try to go to bed by 6am if I can.

Poor dug777 is still awake for the majority of the morning crew though....

 

[OS]

Originally posted by: Lonyo

Originally posted by: OS

Originally posted by: So
This really should go in P&N.

I tried that a couple times and no one there really seems interested in economic discussions. :

Try starting an economic flame war.

Put something like "Bush is collapsing the world economy" and you'll get some replies.

LOL, yeah that I haven't been trying.

Plus with this particular article, that client's reaction I thought was kind of funny, which isn't really politics/news.

 

[So]

Originally posted by: SynthDude2001

Originally posted by: So
The morning crew can wrangle over it. They seem to like to get their panties in a bunch.

So true. That's why I try to go to bed by 6am if I can.

Poor dug777 is still awake for the majority of the morning crew though....

for dug.

He must suffer each morn'.