I was reading something bout this earlier in the year. It made sense then and even more now. The article I read earlier discussed how we have become a nation whose economy is increasingly based on shifting money around, i.e. investing in the stock market, real estate investment, etc. And that there really isn't anyway we can continue down that road.

Eventually the corporations whose income is based on selling goods to the US citizen will fall as those on the lower rungs of the economy can no longer afford to buy too many goods.

What was that statistic I saw last week. Something about the average CEO pay being 260 times that of the average worker bee.

>>Very well could be, borrowed money, borrowed time
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>>But likely to take a few years until the stuff really hits the fan, and since most of us are getting up there in age, most likely will be the problem of the next generation. In the short run, we will enter recession, let the dollar slide even more, and continue to transfer our wealth to those that want to take us down. At some point, they will stop buying our bonds (loaning us money) and the house of cards will collapse.
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>>Just this last hiccup in subprime could have collapsed the economic system if it were not for the fed and other central governments pumping in hundreds of billions in liquidity (printing money) which will only work in the short run.
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>Exactly. The ability to print more dollars is endless, but the effectiveness of that strategy will last only as long as inflation can be exported, which is possible only as long as the dollar is the world's reserve currency, which will last only as long as the world accepts it as such. Should I toss a few more "as long as"es?
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>America enjoys this special position because it's the world's largest economic partner. You know, from the old adage - "if you owe me a bit, you're in debt; if you owe a lot, you're my business partner".
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>Interesting times may be coming. Some of the cards in the bottom row look a little shaky.