The US Should Avoid Japan's Economic Mistakes
Stephen S. Roach, chairman of Morgan Stanley Asia | March 6, 2008
The US economy is facing a post-bubble recession rather than a cyclical downturn. ++ As homebuilders and consumers - a sector representing 78% of GDP, are being hit the hardest, the Fed's monetary easing policies which favor consumption are proving ineffective. ++ The focus should be on exports and infrastructure spending instead of attempts to maintain unsustainably high rates of personal spending.
