Wednesday, June 22, 2011

When interest steroid wanes so will Revenues.( consumer spending)

Snapshot Summary :
---------------------------
. If by debt, businesses are leveraged, like a runner on steroid,
. It will be able to go further.
. However, when that debt becomes burdensome,
. And repayment heavier & heavier as revenue drops.
. Economic growth will slow and economy reduced.
. Lesser demands for services & goods.
. Today's economic growth is induced by debt.
. Squeezing that last once out of consumer to borrow.
. No real demand but impulse consumerism
. Do you need to change phone every 6 months ?
. The day sensibility returns, economy will shrink.
. Double dip maybe not.
. But the developed countries disposable income is at extreme low
. Growth will slow for sure


http://joongangdaily.joins.com/article/view.asp?aid=2937887

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