I've commented in a few threads that the top 20% (my guess) of economic activity over the last 15 years was fluff, imaginary wealth created by borrowing, and spent for stuff nobody needs. I have used the example of drawing on one's home equity line to buy jetskis for the family.
I don't expect this source of buying power to return for a long time - not until everyone has forgotten the lesson that home prices can't climb forever.
I conclude that we are going to live in a somewhat smaller economy for a while. Probably several years.
I don't expect this source of buying power to return for a long time - not until everyone has forgotten the lesson that home prices can't climb forever.
I conclude that we are going to live in a somewhat smaller economy for a while. Probably several years.