An anemic recovery built on massive federal deficit spending and personal debt derived from inflated house prices is precarious and unsustainable.
He also links to:
… this story on the rise of bankruptcies in the US– “90 percent of the bankruptcy filings this year will be made by middle-class families, including some 9 million American households in divorce — roughly one new filing every five minutes.”
In a similar vein, Brad De Long provides a graph showing that:
Since 1950 there has never been as big a fall in payroll employment as a share of the working age population. Never. Not even in the double-dip 1980-1982 recession.