http://www.federalreserve.gov/newsevents/press/monetary/20081029a.htm
http://trend-signals.blogspot.com/2008/10/spx-long-term-excess-of-tech-housing.html
We had decades of big bubbles which we are now working off the excess. Due to the globalism, American standard of living was dwindling for decades ever since the American saving was in downtrend, 1970s. Even though we are seeing financial market melt down in 2008, US wealth was in down trend for decades when we consider personal savings level, net asset value and US national debt.
We are not living in the same economic condition as in 1970s when American saving was positive and when US trade deficit was low. Therefore, a comparison between 1970s and 2008 is illogical as surrounding circumstance is quite different.
Our economic condition is much like the Japanese in 1990, and since then, they have regenerated themselves financially and spiritually, i.e. Japanese spirit as a nation. We are not ready yet. American spirit is NOT regenerated, NOT EVEN CLOSE, far from it.
http://tinyurl.com/6pwkll
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