The Destructive Greenspan
"Thanks to rock-bottom interest rates and easy ways to borrow, consumers have been on an all-out spending spree for several years. Now, though, there are signs that the bills may be piling up too high.
"The portion of Americans’ disposable income devoted to paying off debt hit a record high recently, even though interest rates have stayed at record lows. That could put a financial squeeze on many households if and when long-term interest rates finally start to go up.
"... Could put a squeeze on many households?" We will take a wild guess: the coming contraction will grab them by the neck. Many will suffocate.
We wrote four years ago that Alan Greenspan wanted to avoid a Japan-like slump in the worst possible way. Well, he found the worst possible way – the destruction of America’s middle class homeowners.