Here's what's holding together a "global house of cards"
By Elliott Wave International
When financial times get tough, you hear the phrases "tightening our belts," "cutting back" or "making do with less."
Those are common phrases to describe the word "austerity."
If spending and borrowing had been done with moderation when times were good, then the tough times would not be as tough -- or austere.
Instead of "moderation," the best word to describe what's going on in the U.S. now is "excessive," as these headlines attest:
- Consumers boost spending in June (Marketwatch, July 30)
- ... Corporate Debt Is Ballooning (Forbes, August 4)
- A blowout in government borrowing ... (Bloomberg, August 19)
Individuals, corporations and governments find it difficult to be financially frugal when interest rates are exceptionally low.
Here's what the August Global Market Perspective, a monthly Elliott Wave International publication which covers 50+ worldwide financial markets, has to say:
