As I noted, in about one month the banking agencies in this country hope to release an ANPR that will outline and seek comment on specific proposals for the application of Basel II in this country.
Households have expanded spending beyond the rise in their income over the past year – indeed they have done so over a number of years. That can be sustained only for so long, especially given more subdued gains in wealth. Can the household sector keep the US economy ticking over while the business sector sorts itself out?