Debt is big challenge of '07, says Aberdeen

Mike Turner, head of global strategy and asset allocation at subsidiary Aberdeen Asset Managers, says these debts have enabled people to live beyond their means and governments to generate large deficits. Additionally, the use of housing markets as proxy measurements of the well-being of these two economies is leading to mistakes in understanding fundamentals of economic strengths or weaknesses, Turner says. For example, there are those predicting a US recession on the basis the housing market there is slowing. This discounts the fact consumer confidence remains high, along with wages...