That’s what renowned economist Dr. Lacy Hunt is calling for.
- The US is in a period of debt deflation that may take up to 15 to 20 years to normalise
- The S&P is at risk of some ‘false dawns’
- There will be a major shift in US consumer behaviour as savings start to rise and people live more within their means
- He describes the US stimulus in its current form as a grab bag of political promises and says it may be doing even more damage
- Diversified equity portfolio models may not work in the debt deflation environment
Read the full article here.
*Thanks to reader DF