Quote:
Originally Posted by Slava
Good post. That bolded part makes me wonder though....particularly in the US. This recession/depression was to be the deepest and lowest in recent memory and we're being told its over basically a year in... (2 yrs technically, but not felt by the general public for 2 years for sure!). I wonder whether the increased savings is a blip or an actual new trend for the public. When times are good again does consumption go back to the same standard, or do people actually start saving?
I hear about how everyone is cutting back, and then there are line-ups at a new mall and the other malls are all packed with shoppers as well. It can't be both!
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My bet is that the "Let's buy everything on Home Equity under the assumption that real estate prices increase always and forever" racket is probably ruined for a while. Maybe savings rates don't increase that far into positive territory, but I bet they don't dwell as far into negative territory as they were, meaning that a lot of money that was on the consumer table 2 years ago is off the table for the next little while.