The excess had been building up over the years and reached to such a unsustainable level (see the graph below); It's hard to imagine how the US economy could get back on track without a serious sacrifice from the US consumers.
The efforts of government and the Fed to prop up the economy through printing money and more government debt are just trying to stop the pain for a short while. It's delusional to think we will get over this and get back to party again.
Watch this interview from CNBC:
One thing Robertson didn't mention is: If Chinese stop buying US bonds, where can they put their money? At least I don't see China has that figured out. Not yet.
