I normally don’t like to link heavily to other articles on this blog, since this is meant to reflect views from me and my team. I must make an exception though for Roubini [aka Dr Doom].
He has called the markets and the economy correctly for quite awhile now and I believe he summarizes my views on the economy quite well. I also did have the privilege of hearing him speak first hand at the CFA Annual Conference in Orlando this past April.
To sum it up, the USA savings deficit and hyper consumption fueled by Chinese exports and recycled savings proved unsustainable. Green shoots of growth may be recurring again but will not be sufficient to restore the levels of economic growth we were used to. In short, what new model of economic growth will emerge?
See the article in full for his thoughts and some of my own thoughts are in my earlier blogs.