How sound is the US economy?
Once again, a good article from Paul Krugman.
The US economy doesn't seem as robust as people would like to think, and most of it seems to be fuelled by the housing market. The problem today with this is interest rate increase the Fed has to apply to the economy in order to prevent it from overheating.
and when you get pulled back to reality, where your economy is based on wind, not on sound productivity increase, the landing can get harsh!
This can be bad for all of us, because the US plays such a big role in the world economy.
And I am not even mentioning the oil price going through the roof, China diversifying its foreign currency reserve and the US spending way over what would be reasonable.
The US economy doesn't seem as robust as people would like to think, and most of it seems to be fuelled by the housing market. The problem today with this is interest rate increase the Fed has to apply to the economy in order to prevent it from overheating.
and when you get pulled back to reality, where your economy is based on wind, not on sound productivity increase, the landing can get harsh!
This can be bad for all of us, because the US plays such a big role in the world economy.
And I am not even mentioning the oil price going through the roof, China diversifying its foreign currency reserve and the US spending way over what would be reasonable.
posted by Bambitroll at
14:31
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