Mish’s talks it up in Strenuously Overbought, But…?
As all must know by now, I’m sure we’re in a bad way – we’re broke, massively in debt and engaged in a game of financial roulette, propelled by the Fed and other central banks just flooding the world with fiat money. This all might have worked (to an extent) if anyone was willing to go in to debt and buy stuff…but the American consumer isn’t interested. Its now a matter of saving money, first, and then spending, with care. The bonanza is over – no more massive increases in GDP courtesy of massive indebtedness. We can get rich, again – but only if we start working really hard and saving our pennies for a rainy day.
Its really all for the best, in the long run – heck, its already starting to make me a better person. Both more willing to donate to the less fortunate, and more careful in my spending. I hope it continues until I’m tithing on the one hand and have a fat savings account, on the other. Dollars to donuts most people are starting to get like this, at least to some degree. We’ll have a bit less debt-driven flash to our lives, but a lot more real wealth, where it really counts.
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