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Post by spudbuddy on Aug 29, 2010 14:28:21 GMT -6
My washring machine has a better spin cycle than this media twirl - articles.latimes.com/2010/aug/17/business/la-fi-consumer-debt-20100817Household debt is contracting (apparently for seven quarter's worth - that's 3 months shy of two solid years...) which is good, far as it goes... Yet the combination of concern plus dread over Economy fallout (lousy consumer spending) doesn't seem to want to connect the dots. Less available credit (and all its attendant threats - bankruptcy, etc) still short-circuits the obvious, tippy-toeing by .) shhhhh... It appears a lot of folks out there just might be only spending what they earn, for a change. Which means they're spending a helluva lot less than they used to...because they actually earn a helluva lot less than their spending habits used to reflect. Imagine that. Sometimes, in a blue mood, I rather enjoy plugging into some financial spin show, and watch in fascination, the jokesters yap about this stuff as if it never occurred to them that there is a relationship between earnings and spending. Wow. I wish I made what they're paid, to be that dumb. I guess I could stand it for a time, until the embarrassment caught up with me. ;D
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Post by agito on Aug 30, 2010 0:16:27 GMT -6
tru dat
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Post by unlawflcombatnt on Aug 31, 2010 1:51:55 GMT -6
I rather enjoy plugging into some financial spin show, and watch in fascination, the jokesters yap about this stuff as if it never occurred to them that there is a relationship between earnings and spending. Wow. LOL. Yeah, that's quite the revelation, isn't it. The "increased savings" is a deceptive statement. This is an aggregate statistic, arrived at by combining all Americans' earnings and subtracting all Americans' spending. If the rich spend less, while the non-rich spend the same amount, then that reduces aggregate spending. If, at the same time, aggregate income is reduced less than aggregate spending, then that is considered an "increased savings rate." And, If aggregate incomes of the rich increase more than the aggregate incomes of the non-rich decrease, then total aggregate income rises. The point is that even if the non-rich are saving less, that can be offset by the rich saving more--resulting in an alleged "increase" in the savings rate. In fact, that's exactly what's happening. No one's savings have increased any, other than the savings of the rich. Also remember that if you borrowed $400 last month, but only borrowed $200 this month, your "savings" rate increased +$200.
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