The New Threat: Thrifty Americans

Betting on a quick global recovery? Think again. Yes, the Federal Reserve saw recent signs of organic economic growth in the U.S. economy -- "tentative signs of improvement," as The Washington Post phrases it this morning -- in deciding last month to hold off on dramatic interventionist measures. But the global picture looks much more bleak. As The Wall Street Journal reports, Germany, Japan and Mexico -- three of America's largest trading partners -- have reported "steep declines" in economic output in recent days with Mexico reporting yesterday a staggering 21.5% first quarter GDP drop. You can add Singapore to that list too, which reports this morning a whopping 15 percent plunge in GDP in Q1 , the Associated Press reports. These are some of the worst economic performances in generations. For Japan, a country that's experienced very little growth in the past decade, you have to go back to 1955 to match such a poor performance. Simply put, America's main trading partners are tanking ... (link)