"From 2000 through 2007, total U.S. [GDP] ... was $92.5 trillion in current dollars. Total U.S. purchases, however, were $97 trillion, a $4.5 trillion overrun, nearly 5% of the entire period's GDP. Those additional goods and services, of necessity, all came from overseas. ... Personal consumption's share of GDP jumped from a long-term average of around 67% to 72% by 2007, probably its highest level anywhere, ever. ... To ensure a steady stream of product, investment banks competed to buy up subprime lenders. ... By 2007 financial-sector profits jumped to 30% or 40% of all corporate profits, depending on the data source. ... It will be essential to shrink the hypertrophied financial sector. ... Pushing the U.S. economy back to a sustainable path has to be a core priority for a new Administration. Consumption has to fall, by at least 4% to 5% of GDP, and the money shifted to savings and investment", Charles Morris at BusinessWeek, 4 August 2008.
I agree with Morris. Connie Yu, are you listening yet?
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