Nevertheless, what commentators have interpreted as good news about the US economy I have interpreted as supporting my gloomy predictions. You betchya there are imbalances. A fact that Warren Buffet obviously realises and that is probably one of the reasons for his comments about there being few companies worth investing in at current prices. If the economy was genuinely progressing aggregates profits would exceed aggregate losses but without creating an unbalanced economy. This is something Greenspan understands and that is why he is worried.
Consumption comes out of production which in turn is the result of saving.
But the savings rate is so low that there is no way it can support the production structure. Unfortunately, Keynesian fallacies dominate current economic thinking to such an extent that the savings production relationship has ceased to exist for many economic commentators, including a great many on Wall Street. Mention the lack of savings and they will tell you that booming consumption is sufficient to propel the economy. This is dangerous nonsense and the US could pay a heavy price for subscribing to it. GDP was pulled up by a surge in consumer spending, the fastest rate in 11 years.