Wednesday, July 27, 2005

Economic Slowdown

Over at Arguing with Signposts, Bryan is predicting a major economic slowdown, primarily due to government actions or hectoring of the private sector. HE makes a compelling argument that many American families are going to see their disposable income severely limited.

While some may argue that this is a good thing and that Americans need to live within their means, as many of the commenters over at OTB are doing, it certainly will be painful in the short run. And it could be disastrous if it is coupled with a flat, or even deflationary, real estate market.