A Decoupling from Reality

Experts in the Western financial sectors lament “a growing gap between what we read in the papers and what really happens in the global economy.” In the case of Korea, GDP is up and consumer spending has increased. Yet, there is a growing concern over declining household income and expanding household debt. There is growth in Korea, but while some are making more money, there are even more people who don’t, which is the case for the U.S. as well. This gap appears to be widening, as Dr. Warren at Harvard and Dr. Reich at Berkeley contend. In the U.S. case, the worst financial crisis becomes the best year in bonuses and compensation on Wall Street.

Yes, there seems to be a decoupling from reality around the globe, and again, we are long the real economy.