On May 19, 2010, at 11:13 PM, SA wrote:
> Whether reduced saving came from borrowing or from running down
> balances, either way it's not sustainable. Households have not
> repaired their balance sheets. You yourself said the Obama-Geithner
> plan was to roll things back to the unsustainable world of 2006, and
> they have, qualitatively if not quantitatively. In fact, households
> may well have been running down saving in response to the temporary
> boost to home values from the tax credit. How so very 2006. Plus,
> the stimulus will start petering out in the second half.
Hey I never claimed it was sustainable. I'm just talking about what happened over the last few months. For a sustainable recovery we need more wage & salary growth. Not clear how much can be done without the magic supplement of credit though.
Doug