<<victor, i can define savings. so can anybody. we'll all come up with different definitions.>>
that's part of the point.
<<i'd argue savings is the cumulative total of all dollar not in high risk investments. i would include $$$ in money funds, cds, etc.) >>
so you'd exclude equity in small privately-owned businesses, and include checking acct money that might be already obligated by a check currently in the mail?
BTW, some of those "safe" money market accts are now high risk ever since PG&E filed for bankruptcy, since they were holding commercial paper from PG&E....
<<i would not include money in the market. i would call that speculative savings and track it separately. >>
Warren Buffet should apply for food stamps. Would you include state-sponsored college savings accounts?
<<nobody cares what i think, though. >>
oh i do, trust me! <gg>
<<what we do know is that folks have saved less using the govt definition. the trend is important. why? i think it reasonable to assume the bubble market provided confidence to outspend one's means. >>
It also gave folks the confidence to go out and start a record number of small business over the last several years....
<<we can define debt, though. isn't it shocking that equity is DOWN in many bubble housing markets? >>
I've been saying for a while here that when mtgage rates dropped sharply 2.5 yrs ago, huge numbers of homeowners refinanced, and instead of banking the savings, they bought vacation homes, new additions, boats or cars or furniture.
Victor |
