Here’s a snapshot of the economic problems you’ll be dealing with over the coming four years.
US real consumption spending is forecast by Bank of America to fall the most since 1980. Americans will feel poorer.
In tandem, there’s been a rapid reversal in household net worth — something which will only continue if real estate and equity prices fall further. Americans will actually be poorer.
At the same time, there’s a ballooning Fed balance sheet. The American government will be restricted in what it can do to prop up the system.
Of course many of these things (the pooring of America, etc.) have helped Mr. Obama get elected in the first place. It’s now up to him, however, to start solving those problems, rather than highlighting them to the US public.
So, good luck, Mr. Obama – you’ll need it.
Related Links:
Fine unscrupulous mortgage lenders – Barack Obama, FT
Barack Obama’s speech on the economy – Guardian
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