I think this demographic slide theory is interesting, but here’s to hoping it’s just history that won’t repeat itself.

I’m now interested in learning more about it. Thanks!

For me, I think it’s just because we’ve reached the pinnacle of what we can handle. It’s been too long with the U.S. having a declining population (baby boomers now nearing retirement age and we’re having less and less children), and each person overspending more than they could afford with the usage of credit and mortgage refinancing.

If you look at Europe as an example of where the U.S. would be, had we not introduced easy forms of credit into an economy, we could start to see other factors that play into why we’re in such a bind right now. (In Europe, no one has a credit card, they all cook at home, they don’t go out often, they don’t over spend because they can’t.)

I think it’s just the country trying to re-adjust itself out to deal with its new reality (not over spending on credit, saving more, having less children, boomers retiring and spending less), but it’ll take a while before it stabilizes to a more realistic economy.

We were living on a cloud before, and now we’re coming back down to Earth.

Great blog.

While I understand your point, this is nothing new. It’s all been said before.

ps- Why doesn’t someone do an article about my CRUSHING tax burden?? Between my Federal, State, SS, and Medicare tax I loose 37% of my pay before I even see it. With what is left I have to pay sales tax, use tax, excise tax, import tax, disposal tax, port tax, access tax, toll tax, energy tax, waste tax, licenses/permits/registrations, and STILL somehow find the money for food, shelter, savings(LOL!) and more.

I need a printing press…

@TMN – I think immigrants for the most part are more careful with money than native-born Americans. It’s purely anecdotal: based on the fact that I am an immigrant and judge by my circle of friends. At least some things – like eating out all the time – look more like an American habit. In many other countries including the one I grew up in eating out is a special occasion and cooking or taking a lunch from home is more of a norm. It’d be interesting if someone collected the statistics on spending habits of immigrants vs those born in the US.

@Mr ToughMoneyLove – thanks for the link to the very informative post on gold. A couple of my friends who have been right in the past (e.g. sold stocks in 2001 and 2006) are fond of gold; another friend who also has been successful bought coins in the 90s but it considering selling now). I am reluctant to buy gold at these levels especially since I just don’t see how is anything other than perception of its being valuable is driving its price. I do have a tiny (really – only 2K) amount in GLD, although I did transferred some of my 401K in commodities fund in November and am buying more. I just don’t understand the attraction of gold: t’s not like any country is on the gold standard or will use gold standard at any time (and if this were to happen, could there be a confiscation like in 1933?).

TStrump – Are Dent’s books well written or just interesting in what they say?

TMN: I think immigration can help with our SS and Medicare problems but I’m not so sure that they will have enough disposable income to compensate for declining spending by boomers.