CONTRACTIONS ONLY DOLLARS APART
Wednesday, November 07, 2007 - FreeMarketNews.com
Americans represent nearly 20% of the world's consumption. And the U.S. economy, too, is more dependent on consumption spending than any economy ever has been. If American consumers don't spend more, the whole shebang falls apart. We are witness to something that doesn't happen very often - like the eruption of a volcano…or the collapse of a bridge - the first stage of a credit contraction. So far, the effects have made the headlines, but it has not yet affected most people. So far…only at the top and the bottom of the credit structure are people getting pinched, squeezed and punished.
Americans represent nearly 20% of the world's consumption. And the U.S. economy, too, is more dependent on consumption spending than any economy ever has been. If American consumers don't spend more, the whole shebang falls apart. We are witness to something that doesn't happen very often - like the eruption of a volcano…or the collapse of a bridge - the first stage of a credit contraction. So far, the effects have made the headlines, but it has not yet affected most people. So far…only at the top and the bottom of the credit structure are people getting pinched, squeezed and punished.
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