Friday, June 20, 2003

Alan Greenspan: The Maestro or the Sorcerer's Apprentice??
According to Merrill Lynch economist David Rosenberg, U.S. mortgages have grown at 13 per cent in the past year, and now make up a record 30 per cent of non-financial debt. Household debt levels rose faster in the past six months than at any time since 1986, while household debt relative to income hit a new high: 111 per cent. "This is what Fed policy is accomplishing -- akin to giving another drink to the inebriated sailor," Mr. Rosenberg said. "One characteristic of a 'bubble' is excessive leverage. That definition seems applicable in this case."

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