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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 226.10+2.5%Nov 24 3:59 PM EST

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To: Victor Lazlo who wrote (123373)4/10/2001 11:40:28 AM
From: Skeeter Bug  Read Replies (1) of 164684
 
>>I'm arguing that if home equity is not included in the "savings" measurment, then maybe it doesn't even matter.<<

victor, my view is quite simple. it isn't necessarily bullet proof, but i think it is reasonable.

on avg, people used to save "x". now they save nothing. this freed up $ to spend.

on avg, people sold out all their HUGE appreciation and some of their equity. this freed up $ to spend.

neither trend is sustainable, therefore, fewer dollars will be available to spend down the road causing reduced demand compared to what it otherwise would be had the above two trends not been in place.

iow, we took from the future to goose today. folks then extrapolate today's growth well into the future ignoring that paul must eventually pay back peter.

it isn't any more complex than that.

i understand savings is a b* to define, if it is even possible b/c cash moves so fast.
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