U.S. economy to fundamentally shift
Economists say the era of the U.S. economy being consumer-driven may be over since many households are debt-strapped and unable to borrow against their homes. Experts say the shift away from a consumer-driven economy will mean changes in the way Americans live and do business. They say Americans will need to borrow and consume less, while saving, producing and exporting more than they do now. "We are going to need fewer malls and more factories," said Edward Leamer, director of the UCLA Anderson Forecast, "and it's going to be a long adjustment."
Note EU-Digest: This trend of a consumer driven market, which also became more and more prevalent in Europe and other parts of the world can not be sustained and the end had to come. It is not clear what will replace it, but change will come and it will be painful.
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