Blogs by Lawrance G Lux
Greenspan Misread It!
2/23/2004 6:19:18 PM
Fed Reserve Chairman released Household data information, along with a complete misinterpretation of the data. His claimed cause not to worry contain the real worry itself.
Greenspan claimed the amount set aside on average (13%) to repay Household debt, and the amount set aside to pay wider financial obligations (18%) on average, showed that American Households were in good shape financially. Nothing could be further from the truth.
These numbers had risen from the average ratios prior to the Recession. The rise in the average ratios derived from the economic constrictions of the Recession. The danger comes in that Household debt has continued to rise, while the ratios show no sign of following with the advent of the Recovery. The Fed is currently maintaining an Interest rate structure which is not sustainable of the long-term, and will eventually have to be raised to save the Dollar.
The increase of Household debt indicates American Households are overspending their Income, and need to realign their expenditure patterns to conform to current obligations, in a Scenario of rising Interest rates. The Recovery is not sustainable unless the American Economy can generate the Jobs necessary to provide the Income and Overtime to reduce the Household debt service, and return these Household to normal spending patterns. lgl
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More Blogs by Lawrance G Lux
• Spending Plans - Wednesday, May 25, 2011
• Alternate Blog - Thursday, November 18, 2004
• Tax Proposals - Monday, November 08, 2004
• The Election Result - Wednesday, November 03, 2004
• The Osama Tape - Saturday, October 30, 2004
• Post-Election - Thursday, October 21, 2004
• Pre-Election Issues - Sunday, October 17, 2004
• The Debate - Friday, October 01, 2004
• Effect of Outsourcing - Wednesday, September 29, 2004
• Current Economic State - Tuesday, September 28, 2004
• Congress Continues to stick their Heads in the Sand - Wednesday, September 22, 2004
• August Economic Indicators. - Thursday, September 16, 2004
• Best We can Get. - Monday, September 06, 2004
• I smell a Rat. - Friday, September 03, 2004
• Compassionate Conservativism - Thursday, September 02, 2004
• Bush Has Lost Florida - Sunday, August 15, 2004
• Labor--Further Information - Saturday, August 07, 2004
• The Labor Market - Monday, August 02, 2004
• Construction of Fantasy - Saturday, July 31, 2004
• Presidential Responsibility - Sunday, July 11, 2004
• Minimum Wage - Tuesday, July 06, 2004
• The current Economic Problem - Saturday, April 03, 2004
• Eat Crow--Maybe - Friday, April 02, 2004
• New Employment Figures - Thursday, April 01, 2004
• Recession Dating - Saturday, March 06, 2004
• Greenspan Misread It! - Monday, February 23, 2004
• Trade Deficit and Job Growth - Saturday, February 21, 2004
• The Tax Issue - Monday, February 16, 2004
• Productivity Gains and Job Growth - Thursday, February 12, 2004
• Labor Report - Friday, February 06, 2004
• Defense and Homeland Security - Wednesday, February 04, 2004
• Bush Budget Estimates - Saturday, January 31, 2004
• Deficit: Brokings Economic Studies - Thursday, January 29, 2004
• Pension Relief - Thursday, January 29, 2004
• $477 Billion?--What a Joke! - Monday, January 26, 2004
• Income Inequality - Sunday, January 25, 2004
• Revisionist Economic View - Saturday, January 24, 2004
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• State of the Union Address - Wednesday, January 21, 2004
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• Playing with the Numbers - Saturday, January 03, 2004
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• CBO Monthly Report - Monday, December 08, 2003
• The way is goes. - Friday, December 05, 2003
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