The Asset Economy

Read it and weep. Link.

Summary-even though the fed has hiked rates we're still so far behind the curve that we'd need to boost rates to 6%, pretty high. The large problem is that America's high consumption economy is financed out of overvalued asset markets that are funded largely by Asian central banks. The Fed is also liable not to boost rates because its monetary policy is reckless, and therefore the decline will come in the form of a falling dollar. As Roach says, the real monster is

the asset dependent American consumer and a co-dependent global economy that can't live without excess US consumption

That's it. I'm saving at least 10% of my income.