I agree with Gross. It's been refinancing of mortgages -- basically eating into one's seed corn -- that has been sustaining consumer spending. When that peters out, it's not clear what's going to kick in.
More Quotes from Paul Kasriel:
For the Bush administration, Hubbard is a good soldier, he's out there being a cheerleader and the Fed says everything's OK. But you can't see their hands behind their backs, with their fingers crossed.Paul Kasriel
Every time we think the bond market is acting irrationally, we usually find out a month or two later that it was rational, that some people participating in the bond market knew more than most of us economists did -- which is not really a great feat.
Paul Kasriel
This reflects the low interest rates we saw earlier in the summer. While I wouldn't say that a major contraction is imminent yet, I suspect this is close to being the last hurrah.
Paul Kasriel
OPEC doesn't suffer from money illusion. It decided they want an honest dollar for an honest barrel of oil.
Paul Kasriel
That, plus the fact that the Bank of Japan won't be buying as many Treasury and agency securities, will put upward pressure on rates.
Paul Kasriel
measure of the financial deficit that households are running at an annualized rate.
Paul Kasriel
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The life of a man who deliberately runs through his fortune often becomes a business speculation; his friends, his pleasures, patrons, and acquaintances are his capital.
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One day I think it's the greatest idea ever that I'm working on. The next day I think it's the worst that I've ever worked on - and I swing between that a lot. Some days I'm very happy with what I'm doing, and the next day I am desperate - it's not working out!
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