Quote from clacy:
Yes but I would argue that deleveraging is caused by the lack of demand for credit which is ultimately caused by demographic trends. A slowing economy brought on by the boomers beatig retirement also reduces credit demand by corporations.
It's a vicious cycle, IMO
If we are not on the same page, we certainly are in the same chapter together, because I argue your case for you. I made a thread built around it which you saw the link for early in this thread. On this thread we are currently on, I referred to current demographics as becoming a serious, future, economic problem and you did, too, with your use of the word "ultimately." (Maybe you meant "ultimately" in logic, something different than "ultimately" in the future. I am not sure how you meant the word to be used.)
The last 4 years of dramatic deleveraging in the private sector was not done because of change of demographics during that period; not enough time to develop a measurable, demographic TREND. Rather, with respect to the time we are living in at this moment, I see deleveraging due to the emergency of the times forcing it on consumers. (It would be wonderful if the Administration and the Senate majority quit thinking of their political future and instead implement measures for deleveraging rather than advance leveraging. Instead of shrinking the government-do-all mentality, it is engorging the government tits for voter support. Very easy to do when they don't have to pay for it themselves and only have to tack on a $ trillion every year to public debt, conveniently pointing to someone else as being responsible for it.)
I don't see deleveraging in anyway over the last 4 years (once again speaking only to the private sector) becoming what it has become in the private sector because of the
current demographic composition either. It came from the exigency of our melt down forcing it on the private sector. When not done voluntarily, nature (economic science) will do it to you.
Give time a chance, and we will see serious, economic consequences of current demographics exacerbating our economic, black hole we will already be in.
http://www.elitetrader.com/vb/showthread.php?s=&postid=3712161#post3712161