Which is better? Personal savings rate increase or decrease

Discussion in 'Economy' started by ssicalove, May 6, 2010.

  1. ssicalove
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    ssicalove Rookie

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    I have a question regarding personal savings rate during recession.

    During recession, people save more. Therefore increase in personal savings rate.

    But does this actually help the economy recover?

    Doesn't it help either way? spending or saving?
    Because saving will go to banks,stocks,bonds, etc so it would help corporations/governments/etc to spend.
    While spending will contribute to the market.

    This is a confussing thing to me.
     
  2. mascale
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    mascale VIP Member

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    Canadian Media Theorist, Marshall McLuhan, described money as a cool medium of communication, not a hot medium of communication. Money would engage the holder into a participatory mode, whereas a hot medium would tend to load in a single human sensory, linear mode, like a disconnected specialization.

    That aside, Lord J-Keynes actually became a policy basis theoretician since government intervention into the market would overcome the tendency to hoard money in times of terror. Even Arizona is frozen in state-of-near terror, most recently being exploited by Rev. Al Sharpton. "After Dark, every African American is a Mexican," or some such concept.

    Ben Franklin actually said it wrongly, who did not know very much about Mexicans at any rate. "A Penny saved actually loses value in a general, commodities, deflationary recession."

    English was a second-languge to recent immigrants, even then.

    Arizona remains on alert!

    "Crow, James Crow: Shaken, Not Stirred!"
    (It is noted time and again: Just how patiently Her Majexty's PM had gone to Davos, to instill the accurate concept of a credit market among the former, and assembled, aboriginies, now in the more civilized state. The financial managers from The Colonies, themselves were generally elsewhere, doing non-productive enterprise as is expected of the Democracies. There are actually European People who learn their economics in Greek, apparently! Apparently,Her Majesty's English is not as well known, internationally, as once it was(?)!)
     
    Last edited: May 6, 2010
  3. Skull Pilot
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    Skull Pilot Platinum Member

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    Maybe we should say a penny wisely invested is a dollar earned.
     
  4. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Try paying your mortgage with big screen televisions and vacations if you lose your job.

    Savings are prudent if invested wisely.
     
  5. KissMy
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    KissMy Free Breast Exam

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    Saving at the beginning of the recession is wise. Deflation is increasing the value of your savings even if you are not investing it or earning interest. When the government prints massive amounts or piles on large debt devaluing savings, this causes most to dump their dollars & invest in things that have declined most in dollar terms or anything to prevent their savings from devaluing.

    It is like the government is kicking & shoving you out of your dollar savings & forcing you to invest in something weather you want to or not. If you don't you will loose because they are going to force inflation on you, like it or not.
     
  6. hjmick
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    hjmick Gold Member

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    What are you selling?
     
  7. mascale
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    mascale VIP Member

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    Personal Savings is generally a different concept from Speculative Investing. The first concept is more akin to hoarding, whereas the second is more akin to gambling. Based on savings, even secured credit cards can become available. Based on Speculative Investments, then even margin calls and leaping suicides are considered normative.

    We are actually discussing cvilized people, even in this thread, just like Al Sharpton in Church!

    Las Vegas after sundown is not all that dark. They may even know this, in Sedona.

    "Crow, James Crow: Shaken, Not Stirred."
    (Great Chief in Manhattan invested, instead of saving, and lost for entire tribe, forever!)
     
    Last edited: May 6, 2010
  8. uscitizen
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    uscitizen Senior Member

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    Buy what you need not what you want.

    And yes savings slows down the recovery but makes the recovery more sustainable.
     

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