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Hedgeye has a very interesting guest post up today written by 33-year veteran of the St. Louis Fed, Dr. Daniel Thornton. Regarding the chart above, he writes:

I predict that the current level of household net worth is not sustainable. I believe that some unforeseeable event will prick the bubble, perhaps this year. The result will be recession which will, unfortunately, be accompanied by more misguided monetary and fiscal policies. I call this monetary and fiscal policy insanity: Keep doing the same thing and expect a different result! I would love to be wrong, but I doubt I will be.

Read the full post at Hedgeye.com.

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