Nouriel Roubini, you will not be surprised to hear, takes a skeptical eye to recent stronger economic data in this quote from Bloomberg over the weekend: “U.S. consumers remain income-challenged, wealth-challenged, and debt-constrained. Disposable income has been growing modestly – despite real-wage stagnation – mostly as a result of tax cuts and transfer payments. This is not sustainable.”
Is he right? And if domestic demand and job growth look decent enough, are they enough to sustain 2% GDP given the Euro-mess and the China-stall?
