The inimitable Howard Davidowitz on whether he has been completely wrong over the past year and whether America is in the midst of a glorious recovery:
Retail analyst Howard Davidowitz of Davidowitz & Co. has always been one of our viewers’ favourite guests. Howard’s flamboyant bearishness won hearts and minds all through the financial crisis, and we–and you–never get tired of hearing from him.
But Howard has been bearish for a year now–all through one of the most amazing bull runs in history. Against all odds, the U.S. economy appears to be gathering steam by the day, charging out of the worst recession since the Great Depression and heading toward a strong recovery.
So what does Howard think about that? Has he changed his tune? Was he completely wrong?
In Howard’s view, nothing has changed. Howard thinks the U.S. is still careening down the road toward a hell of fiscal instability, over-indebtedness, ballooning budget deficits and interest payments, and declining living standards.
The U.S. is broke, Howard says. The current “sucker’s rally” will end up like all the sucker’s rallies that have tormented Japan for the past two decades. It will be a false dawn that will momentarily distract everyone from the enormous fiscal challenges we face … and then reality will take hold again.
We won’t be able to get out of our pickle without tremendous pain, Howard says. The American people are figuring that out. And the American people won’t stand for the status quo anymore.
- Retail sales up but America in “dramatically worse shape” versus year ago
- Wall Street-D.C. bigwigs “buried our country … sold us down the river,” Davidowitz says
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