A great opinion piece from Mr. El-Erian. He points out what is negatively impacting the US and highlights some issues that I have raised in several of my presentations.
One thing that I have mentioned is that the US has changed structurally from a borrowing nation to a nation that is borrowing less and hopefully saving more. Which means demand for good and services are not going to be as high as they were before our "Lehman Moment". Essentially the "invisible hand" that we tried to manage for such a long time is waiting for the markets to reach a fair equilibrium (e.g., the housing market). We are far from reaching this moment from the countless data that is telling us that we are going through very long and arduous economic recovery. Right now the amoung of debt here and abroad is our economic albatrous.
Right now the amount of debt here and abroad is our economic albatross.
