A long, detailed read but worthwhile from one my favorite economist: http://www.hussmanfunds.com/wmc/wmc150330.htm

If you’re not up for the details, the executive summary is very good. Here are Dr. Hussman’s first 2 points:

  • The U.S. has become a nation preoccupied with consumption over investment; outsourcing its jobs, hollowing out its middle class, and accumulating increasing debt burdens to do so.
  • U.S. wages and salaries have plunged to the lowest share of GDP in history, while the civilian labor force participation rate has dropped to levels not seen since the 1970’s. Yet consumption as a share of GDP is near a record high. This gap between income and expenses has been financed by debt accumulation, encouraged by the Federal Reserve’s policy of zero interest rates, and enabled by fiscal policies that prioritize income replacement rather than targeted spending and investment.