Behold the collapse in HH net worth:
Fed: Household Net Worth Cliff Dives in Q4
What's particularly important to remember here is that the wealthiest have lost the most. And the wealthy have been the prime engine of US consumer consumption. All those Lexuses did not go to folks who work at McDonald's. As has been mentioned here before, a fundamental re-alignment of this nation's economic structure is upon us (one long overdue) and it is one which will be painful and protracted
Anyone who expects 'consumer spending' to 'rebound' once 'recovery' begins (Kudlow?) does not live in a fact-based universe. A consumer-led recovery will in fact likely never happen here - at least one that presumes that folks will spend like they have over the past 35 years. Instead, 'recovery' will look like higher savings and targeted spending on necessities and stuff that's well-made and will last.....
Updated estimates on immigration and wages
1 hour ago
Saw that net-worth thing at CR earlier this afternoon and swear I could hear you exclaim, "Holy s***!" And you're, like, 3,000 miles east of here.
ReplyDeleteI've started to have problems making myself turn on CNBC every morning. Just seeing your K***** reference above made my eyes bleed a little.
Sorry I used profanity twice in one comment.