I think that Mr Abelson is mathematically challenged, he is also market direction challenged. I have stopped reading his ravings some 10 years ago, but in all that time, he had a single tune, the dance of the bear, and he was "WRONG, WRONG, WRONG". Nor did he become "more bearish" at critical junctions like March 2000, August/ October 2000, January 31st of 2001(no later than 2:00 PM <g>), late May/early June 2001. Apart of his sarcasm, which was becoming boring, his writings have no redeeming values, IMHO. $100 B is one percent of total GDP (now standing just a tad above $10 Trillions), while saving rate is calculated as a percentage of "take home pay", I don't have that number handy, but it surely is not equal to GDP, it is probably not even 50% of GDP. Furthermore, the numbers that the government often cites are truly misleading, they do not take into account savings in pension funds nor savings created b paying off mortgages, a very poor measure of the true saving rate in this country.
Zeev |
