LONDON: Job losses and a contraction in the business sector where more than 80 percent of Americans work show that the angle of descent for the U.S. economy is steepening.
Unsurprisingly, while problems are spreading to the formerly indefatigable American consumer, the old issues – falling home prices and crippled credit markets – show no signs of healing themselves or being healed from on high.
And yet, the Dow Jones industrial average is just 14 percent below its all-time closing high, an improbable combination.
The big question – can the economy possibly shake off a deflating debt bubble? – seems to have been answered.