Thanks for your insight. While I am not an expert, you are right, the DoD spending played a lot into this too. I also agree that Innovation will too, as in any other business/ country; my theory is that the US will go green as the new far west / start-ups generator and hence growth-driver.

However, if you do the maths:
- current US debt is roughly 12 trillion.
- Iraq war cost: 1 trillion (approx)
- bailout 1 (700Mish)
- Stimulus package (900M ish)

So out of the 12 T (new abbreviation , 1.6 is very new, 2.5 is recent. Yet those increments are what make the news these days and hence what worry the consumers.

We agree, the buble would have burst anyway. The fact that people now realize it, just makes it a worse and faster process.

Cheers,

Romain

Your analysis seems focused on the large consumer aspects of teh US economy.

Neverthless there are also other aspects connected to teh innovation that Hav enot been working recently.
The DOD has been the equivalent of the European public partecipation to companies. It has put tons of public money to feed the defence ombrella and a number of small and medium companies. The war on Iraq has alterred this equilibrium by shifting investments from technology to services.

In addition the in th elast 20 years most large corporates have opted to profit from the R&D done through the eighties and have incrisingly sought margins increase by moving production outside.

These two elemnts of the innovation cycle are somehow missing at this point. In other words in your analysis as in that of other business people I see the assumption that value cannot be created byoind an undefined limit.

The topic is interesting , but I have to go out.
Have a nice eveing.
Ciao
Paolo