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Will The Old Consumer "Normal" Come Back?

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DEATH OF THE CONSUMER
Commenting on a chart showing that discretionary spending has reached a 50-year low, Naked Capitalism plays devil's advocate:

"Comparing this downturn to past post war busts seems questionable. Those recessions, save our current bust, were the result of imbalances in the real economy. Inventory swings explain more than 100% of the change in GDP. By contrast, this one is the result of a 20 year debt party in the US, with the manic phase starting in 1999. This is a different sort of beast, and expecting old patterns to reassert themselves quickly is a bit of a stretch."
SOURCE:   Naked Capitalism

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