In a post on my blog yesterday I began dissecting what I see as systemic issues in the global economy. I’ve been reading on this topic a lot recently and I think there’s a lot of merit behind it based on what I’m seeing in the markets.
Artificial Growth is finally catching up to us it seems. Large interests world wide, have been propping up demand for years in an attempt to get consumers to pick up the slack.
Sadly for them, things haven’t gone according to plan. There are smarter people than me who have trouble pin pointing the reason but I think a big part of it is that consumers are struggling with Economic PTSD. The trouble with predicting the economic future is that analysts tend to be overly optimistic and consumers have been showing their pessimism during this slow recovery.
Unless the global lack of demand can be addressed in a sustainable way, this PTSD condition will persist! If demand does manage a come back, it’s highly likely that today’s record cash reserves will start pumping back into the system and we’ll finally get a legitimate bull market again.
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