Another Housing Bubble is Starting

[Frodo]

As glad as I am about seeing an economic recovery that is finally starting to gain steam, I do not want to see it based on housing, credit, and consumption like the last time.  We need an economic recovery based more on manufacturing exports, savings, and investment.    

[Frodo]

As glad as I am about seeing an economic recovery that is finally starting to gain steam, I do not want to see it based on housing, credit, and consumption like the last time.  We need an economic recovery based more on manufacturing exports, savings, and investment.    

Guys, all economic growth is dependent upon consumption.

No, it isn't. 

[Frodo]

As glad as I am about seeing an economic recovery that is finally starting to gain steam, I do not want to see it based on housing, credit, and consumption like the last time.  We need an economic recovery based more on manufacturing exports, savings, and investment.    

Guys, all economic growth is dependent upon consumption.

No, it isn't. 

What, someone has to consume what you produce, unless you're planning on just throwing it into the ocean.

China will eventually transition to a more consumption-based economy. 

[Frodo]

As glad as I am about seeing an economic recovery that is finally starting to gain steam, I do not want to see it based on housing, credit, and consumption like the last time.  We need an economic recovery based more on manufacturing exports, savings, and investment.    

Guys, all economic growth is dependent upon consumption.

No, it isn't.  

You can't consume something unless someone is producing it.  Therefore economic growth is based upon both consumption as well as production.  Ours, for too long, was based upon consumption at the expense of production, which led to our recession.  

Not a difficult concept to grasp.  Therefore, Opebo is wrong -as usual.