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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Amy J who wrote (25334)11/20/2004 8:10:32 AM
From: Elroy JetsonRead Replies (2) of 306849
 
1.) Let's say that the current savings rate is 0%.
2.) Let's say the savings rate suddenly became 20%.
3.) Let's say that our level of exports remained the same.

Have you ever seen an economic recession where GDP declined by 20% before?

That's why the current solution is borrow and spend. An increased savings rate would implode the Reagan spending/debt bubble.

.
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