There may be trouble ahead

Global equity markets are teetering on the edge of total collapse, as the US, the only real engine for world growth, grinds to a halt.

Stephen Roach of Morgan Stanley recently pointed out that the US consumer was responsible for 64% of the growth in the world's economy from 1995-2001. During this time, the entire world, and especially Asia, spent huge amounts on factories to supply seemingly infinitely-growing US consumption.

The massive global capacity overhang is the main problem. These compani