trikerguy

The Real Cause: Current Account Deficit

Paul and others,

I guess I'm just too old to hang in there with you young guys.

I remember when I bought my first house (and several later) that the real estate broker only showed me houses he had determined that I could afford. The "savings and loan" would only lend on 1 1/2 to 2 times income and I had to have 20 percent down. The appraiser gave a true valuation, no inflated value. I guess these " professionals" must have had my interests in mind not just opting to make a buck for themselves.

How times have changed! So (recently, has it changed yet?) these "professionals" had only their benefit in mind. Leveraged money flowed with the risk passed off. Ethics became an unknown concept. Ditto for the sellers of any consumer good that could be financed.

To blame the guy at the bottom of the food chain is simplistic.

For Market Volatility, Blame (or Credit) the Media and the Internet

While you didn't cover all aspects of what moves markets (and your piece didn't have that intention), I wholly agree that media has its agenda - sell more advertising or support the political/economic views of its stakeholders . Therefore, it often gives "facts" that are sperious. The net goes further. Posters require no substantiation. So in both cases I consider the sources flawed unless the author has a proven track record.

Adjusted for Household Size, Real Income Reached an All-Time High in 2007

Xyrus has it right. For a PhD to spin the statistics is not unheard of, but it does call into question his ethics.