Up too early this morning – reading Steve Ballmer’s speech to the US House Democratic Caucus Retreat yesterday in Williamsburg (how did that get arranged anyway?).
In our opinion, in order to reach the reset point, three things need to happen. First, the economy must be deleveraged. Private debt as a percentage of GDP has to be reduced. Restoring health to the nation’s financial system is a fundamental part of this.
Second, confidence must be restored. The stimulus package, in my opinion, is vital. It will provide a cushion as we reach the reset point and it will help restart our economic engine.
Third, America really has to return to growth that’s built on innovation and productivity, rather than leverage and private debt. That must happen.