The news pundits say that the economy will not recover unless we start spending. But the people are cutting back to pay credit cards back,student loans,etc.. People saving due to layoff fears. And wont most spending go to chinese goods which will not create jobs anyways?
In the sense we've previously known "recovery"... the US economy will NOT recover this time. Not now. Not soon. Other than government manipulation of data and money, of course.
What jobs? No one wants to hire Americans when you can import cheap indians via H1B and export jobs as well to china. So what kind of jobs do we need to create?
it is a lose lose scenario. if they pay off their debts they do not spend. if they do not pay off their debt pensioner poverty. find a way to pay off the debt without the consequences on demand. increase demand in another way and come to arrangements with lenders.
How will the people pay off their debt if most of them had been laid off from work? That's not easy to do..
True enough. America NEEDS to go through a "washing out and reset" (and probably will.. inspit of all government efforts to prevent it) Government wants to rekindle growth without the reset process... I doubt it's even possible.