Lower Thermostat, Get Rid of SUV's, and Save

[Annie]

Seems everyone, well almost everyone, got the message:

knoxnews.com: News stories by the Associated Press

Americans' saving more, spending less

By MARTIN CRUTSINGER
AP Economics Writer


WASHINGTON (AP) -- Americans are hunkering down and saving more. For a recession-battered economy, it couldn't be happening at a worse time.

Economists call it the "paradox of thrift." What's good for individuals - spending less, saving more - is bad for the economy when everyone does it.

On Friday, the government reported Americans' savings rate, as a percentage of after-tax incomes, rose to 2.9 percent in the last three months of 2008. That's up sharply from 1.2 percent in the third quarter and less than 1 percent a year ago...

But now it's not the 'answer.'

 

[editec]

People are now saving and not spending?

The FED is keeping the interest rates down?

Meanwhile, the government is borrowing and pumping money into the economy that they do not have?

Hmmmmm...

This sounds like a good time to go into debt to purchase investments with real intrensic investment value to me.

Assuming that one can cope with the debts during times of an economic depression, I mean.

I have still have a line of credit...maybe Spring is the time to fix up my shed to convert it into that rental unit I know it could be.

When my wards move out (and that will be fairly soon, I expect) this home is too big for me.

Maybe I'll rent out the house for the summer (rental complete with a gardener and caretaker - me) who lives in my shed.

Interesting times, these.

 

[WillowTree]

George Boooosh told us to go shopping. obamalama said that was a disgrace, we were not supposed to go shopping. so now obamalama is in his 88 degree shirt sleeve suana called the WH and I'm not going shopping. I'm done shopping. I hiding all my money.

 

[jillian]

Seems everyone, well almost everyone, got the message:

But now it's not the 'answer.'

Individually, savings is good. But you know that for purposes of our overall economy, spending is better, right?

Of course you do. Just more spitballs. And I'm not quite sure why. Isn't it in all of our best interests for the economy to improve?

Silly moi.

 

[WillowTree]

and the hypocrites on the left laughed, chuckled derided and called Bush a "moronic chimp" when he suggested we go shopping..

 

[jillian]

perhaps because that was the Bush's only answer... while they raped our treasury and enriched their oil company and banking buddies.

 

[ReillyT]

Seems everyone, well almost everyone, got the message:

knoxnews.com: News stories by the Associated Press

Americans' saving more, spending less

By MARTIN CRUTSINGER
AP Economics Writer


WASHINGTON (AP) -- Americans are hunkering down and saving more. For a recession-battered economy, it couldn't be happening at a worse time.

Economists call it the "paradox of thrift." What's good for individuals - spending less, saving more - is bad for the economy when everyone does it.

On Friday, the government reported Americans' savings rate, as a percentage of after-tax incomes, rose to 2.9 percent in the last three months of 2008. That's up sharply from 1.2 percent in the third quarter and less than 1 percent a year ago...

But now it's not the 'answer.'

You are right. "Now" it is not the answer.

When we were relatively prosperous, it would have been better for the entire country if we had saved more and spent less through credit (and for the Fed to have managed interest rates better). Now that the wheels have come off and the country is in a recession, it would be better for us to spend rather than save. Different times call for different measures.

 

[Chris]

It is an incredible time to buy a house because prices are cheap, and the interest rates are so low that you could rent it out in the future for the cost of the mortgage.