Another “lost decade” is probably about the best Americans can reasonably hope for, based on this compelling case made by Mike “Mish” Shedlock over on his blog.
Bottom line is that, over the last 20+ years, Americans spent too much money, and ran up too much debt. Now, like it or not, we’ll be forced to start saving more money, and paying down our debts.
When people save money and pay down debt, they have less money left to spend on $5 lattes and Vegas hotel rooms. So expect that we’ll see luxury goods continue to “revert to the mean”…this country just built too much stuff, and sold it to people who couldn’t pay for it…well out of real savings, at least.
But all is not doom and gloom here at Commodity Bull Market Central! We’ll be cashing in our fat futures gains and silver bullion for discounted Vegas rooms and cheap lap dances…for pennies on the dollar…yeah Greater Depression!
“Show me you love me, baby…”
Remember when times are crappy – it’s like the story of the two hunters in the forest. One hunter is worried about outrunning this bear that is chasing them. The other guy goes: “I don’t need to outrun the bear…I just need to outrun you!”
Thanks to good friend, reader, and basketball teammate Jon Lederer for sharing this piece.