growser7

Global Markets in Review: Does the Rally Have More Steam Left?

Cetin, man, what are you saying? Once we get to a negative savings rate the economy will start to improve??? That's like burning down your barn so you can stay warm. Common sense tells you that leverage only sustainably grows the economy if you leverage yourself so you can build productive capital. In the last decade Americans leveraged themselves to overpay for housing and to buy a lot of rubber ducks from China. We need to go back to that like we need a glass full of strychnine A 4% savings rate is hardly "hoarding cash"--it is still below historical norms and is an overdue return to some of the virtuous behavior that helped build this nation.