What US of A should worry about:
- contraction of borrowing
- excess inventory for housing (price will continue to fall)
- education loan peak around USD900 billion (now) vs USD100 billion in 1997 and very similar to housing trend
- unemployment remains high
- social media bubble is building up
- lowest dividend yield in history
- too high gearing (causing lots of foreclosure and bankruptcy)
MyView
Not only USA is facing such problems, it is also the same in Europe, if not worst. China and Japan as well. The credit driven growth is now gradually reversing.
The PIIGS are nicely roasted. MENA is in a mess. Tension in Iran and Syria is not helping. Japan reconstruction fits the "broken window theory", it won't work. CHINA overstock every commodities available. Once the music stops, the suppliers for CHINA consumption will follow to collapse. This is real, it will unveil one by one (economic disasters), not to mention natural disasters and geopolitical disaster.
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