Why There Is No Escape Velocity: Household Spending Is Chained To Income Absent A Credit Bubble

It really is that simple, in that without a debt-fueled substitute of requisite “strength” (the student loan bubble and auto loan bubbles, for example, are not nearly of “sufficient” magnitude nor, it appears, intensity to fully replicate the homes-as-ATM’s effect) there is nothing to drive spending above simple earned income. That is a huge problem given that income continues to follow upon a much lower trajectory than anything seen in the post-war era.
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