Thursday, February 01, 2007

Unsustainable Spending

Barry Ritholtz of the Big Picture Blog writes:

Consumers continue to spend money at a faster rate (4.4%) than their income is growing (3.5%). That may be unsustainable, but determining when it hits home is a mere guess. (obviously spending more than your income increases ain't gonna help the household savings rate none either).

Continue to spend...

More debt is getting piled on every day. He's right: it is unsustainable. How long can it continue?

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