Robert Albertson's CNBC interview

by Laura Ehrenberg-Chesler on August 21, 2009

in Credit Crisis,Debt,Fiscal Policy

Yesterday, August 20th Robert Albertson and Don Marron were guest hosts on the .  Robert is Chief Investment Strategist at Sandler O”Neill in New York and someone whose opinion we value.

As in the past, Robert made several important observations about banking, the economy, and the consumer.

The first of these is that we need calm heads to prevail as we bring the economy into equilibrium, and ultimately to prosperity.  Demonizing Wall Street or the banks that provide liquidity through the secondary markets and credit, will only serve to hinder the process, if not stifle it completely.

The second insightful observation he made is that the American consumer is smart.  They will delever first and then start to spend again.  At the risk of repeating what is a favorite theme at Crossvault, we think the healthiest, most sustainable recovery is only possible if individuals delever, save more, and spend within their means. 

It looks like that is in fact what is happening.  Let”s hope as Robert does, that the Government stops creating artificial stimulus and encourages more saving and less spending.

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