>" that the US spend less ..."
...as Gersh says, Americans tend think of their IRA's and 401-K's and other stocks, StockFunds as "savings" - kapital gains in these accounts - hey, that's not "more savings" but, disposable income. Rather than simply compounding or, classically re-allocating kapital gains, folks have been more inclined: (1) to increase margin / credit leverage; and, (2) go out and buy more-better houses, cars, clothes, electronic toys, etc. IOW, consuming things is a socially acceptable diversification of wealth over here in Kapital-Land.
Right now there is very little "job uncertainty" over here; indeed many folks may feel that if they were to quit their present job they may get an even better salary elsewhere. They're not so concerned about income... as Gersh says, it is this perception of wealth = well being and "surplus savings" = disposable income.
...nothing mysterious about consumerism to a man as worldly as you, DJ (^_^)
But imho there is another aspect, a "chicken before egg?" kinda paradox. Picture American workers not only consuming houses and cars and clothes and electronic toys, but also disposing "surplus" income on risky TechStocks... from the data I've seen, the rate of change of American RETAIL activity is a leading indicator of the NASDAQ COMPX.
To the American worker, with a pocketful of change - going down to the mall to buy the latest SONY toy is about the same as going online to buy the latest TechStock :-/
==> these people aren't investors, they're consumers.
-Steve |
