A perfect storm

Economist Robert Samuelson writes in the Washington Post that we really are screwed. He says we face 3 problems any one of which would create big headaches.  Combined the problems are practically unsurmountable because the cure for one causes another to be worse.

The three problems he cites:

1.  Collapse of consumer spending.  Consumers are 70% of our economy.   When we stop spending we are in a recession, period.

2.  Credit crisis.  Banks are not willing to lend and won't be any time soon.

3.  Global trade imbalance.  We have been running huge trade deficits with Asia.  Basically, we've been keeping their workers employed (for low wages).  

It's a depressing article.