1/16/10

A sinking feeling

From recent comments by seasoned economist Gluskin Sheff’s David Rosenberg. The problem is that all this fiscal largesse, intervention and incursion cannot go on indefinitely because there are limits to what the taxpaying public will support in terms of policy. Trying to get people to buy a home when the homeownership rate is still well above the long run average; trying to spur auto consumption when 20% of the households in the U.S.A. are already a three-car family — these policies aimed at reviving a defunct cycle of over consumption is starting to be viewed as a colossal waste of taxpayer money.

He has been cautious for a long time. But he makes sense. These are not normal times and few people have the experience of dealing with them. The sad part of the story is that the people who can afford the least are those who really pay the price.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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