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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: LLCF who wrote (107531)6/8/2001 12:58:23 AM
From: pater tenebrarum   of 436258
 
no. they are saying the sale of stock 'counts as consumption' (i.e. is DEDUCTED from the savings rate). see the Alexander explanation i posted.

one thing remains as the bottom line: the negative savings rate is still, thank God, due to consumption exceeding savings. i.e., people spend more than they earn, and have to dip into their savings, such as they are, to finance the difference. or amass more debt, alternatively ( which is actually the preferred method, judging from the consumer credit data).
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