Someone should give me this guy's job...

http://www.forextv.com/FT/Text/ShowStory.jsp?id=2169

...because not only can he not add, he's futher out of touch with the economic situation than I am with a 23 yo coed.

Really, I gave this article a chance. My little confidence puppy, currently battered and untrusting, raised his head at the thought that things may really not be that bad...until I read this:

"Rising rates will reduce US consumers import appetite, according to Mr. Roach. How? US consumers will need to save more money to pay off their rising debt burden because they won’t be squeezing much wealth from their individual asset bubbles in a rising rate environment. Thus, instead of shopping 24/7, US consumers may spend some of that time at the bank making savings deposits."

....nope that's not it. Have you been outside of New York...or wherever you reside Mr. Crook? People are in debt "up to their eyeballs " to sustain their spending habits. Many of them have taken out home equity loans to the extent they are upside down in their mortgages. A rise in interest rates would further exacerbate the situation by pushing down already inflated home values. Further, most if not all of these loans have variable interest rates, this will not only reduce consumer spending, it will also force many people (unable to sell their homes to cover their loans) into bankruptcy.
I assert that this is no small group of people. If Dave Ramsey can support a national call-in show with every other person calling in claiming tens of thousands of dollars in the credit card debt...yeah...consumer spending is not going to be reduced...it's going to be non-existant.


Consumers won't be squeezed by their rising debt burden they will be crushed and the world economy along with it.