You can't make this stuff up!

Rosenberg -

Then we came across this surreal column in the op-ed article of yesterday’s NYT 

by Daniel Gross.  His message is that “the new frugality is a myth — and that's 

good for the economy.”  He adds, “for this recovery to mature, broaden and 

persist, the greatest economic force known to mankind — the American 

consumer — has to get back in the game.”  

Wow.  Talk about playing by the old rules.  There was no mention in the article 

the fact that with a 70% share of GDP, the U.S. consumer never exactly went 

into hibernation, even if spending decisions have changed.  

Then he goes on to extol the virtues of debt (what would Kant say?) and longs 

for the days when we collectively lived beyond our means: “The renewed 

willingness and confidence to spend money we don’t have is vital to the 

continuing recovery.”  

Huh?  And I thought employment and income were the vital components to 

sustainable growth.   

Then Mr. Gross goes on to say — brace yourself: “Money may make the world go 

'round, but credit makes the gears of commerce run smoothly.”  

Yes, sure it does.  Up until you reach a point where 30% of the population have a 

sub-620 FICO score.   

But listen to this ... the coup-de-grace: “As the economy slowly recovers, there 

are signs that Americans are rediscovering their free-spending ways.  Total 

consumer credit, which includes non-revolving debt like car loans, have 

stabilized, and it rose in both June and July.  It’s back to where it was in the 

second quarter of 2009.” 

What?   

CdeR: wow, combine the above with NY Fed VP Brian Sack's comments that lifting asset

prices higher than they would be via Fed asset purchases "would be a good thing" and you

get a glimpse into the crack addicted economy that is the USA.