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What makes this any different from markets 10 years ago?

To the person who loses their job because they are uncompetitive, probably not much.

But there is a different economic climate now. The US could hide the deficiencies in its economy in the 90's because the stock market boom boosted asset prices across the board as everyone thought the best place to put their money was in the USA pushing up asset prices thus pushing up the dollar giving the US consumer added purchasing power.

Now the asset prices are overvalued which means that their has to be a downward correction. This makes servicing debt much more expensive than in the 90's which is a big problem because the USA is dependant on foreingers to service the debt.

So what does the USA do it goes into debt overdrive and it can only end badly. Not just for the US but for the foreign bankers that provide the money for the debt in the first instance.

Every time I turn on CNBC they talk about how the US consumer has to pull the global economy out of the dolldrums. The truth is they are flogging a dead horse, how much debt can the US consumer go in to prop up Asian exporters. Rather than boost wages in their own countries they all think the key to growth is exporting to the US.

The low interest rates and excess liquidity have been key to promoting US consumption which has helped the Chinese and Japanese exporters.

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was just talking to one of my co-workers and he mentioned that he re-financed his condo yesterday and now....within couple of months he will be getting a check for $20,000. Now thats what you call spending money

This guy demonstrates exactly my point. He will be in real trouble if he loses his job.

The hard honest truth is the USA and Australia for that fact live beyond their means and eventually there has to be a reckoning.