By all accounts, the American economy is a bit unhealthy as of now. Pick an economic indicator, any indicator. Third quarter GDP is at 2%, this figure released just before Halloween and causing quite a fright. Unemployment and personal consumption figures aren’t exactly stellar either, and any gains effected by the GDP were set off by net imports and sharply outdone by the increase in inventories. Consumption figures have been alright, but nowhere near what it should be and the savings rate too has fallen, presenting a picture that is not rosy at all.
In a sense, the American economy is a bit like a zombie right now; it’s the walking dead, ambling along in a mindless haze. In a normal, well-balanced economy, consumption and GDP is locked in a sweet, sweet tango while savings is [...]