"Maybe that's the real reason why Americans save nothing today. And maybe it's the "hidden" reason why Americans are buying houses rather than (or as a substitute for) gold today. <<
Searle, there are so many wise words written today I just can't keep track. We have discussed this before. And if you don't want to believe those words of wisdom, why, perhaps another slant might be more suitable. Or, if the fancy strikes, the exact opposite might fit a Contrarian.
The above statement is partly true, but I think the ridiculously low interest rates invites people to borrow. Borrowing "money" is the best deal in town. Saving "money" has to be the worst. So, if you leverage your borrowing (and what can be more leveraged in dollar terms than a home mortgage), you can win big. Clearly, the borrower is richly rewarded, while the saver suffers the loss. All this from the world's economic saviour, Greenspan. Here is a guy who last week admitted to having changed his strong held views of 40 years, or since he became the saviour. He has a history of changing his views, and will probably change them again and again to suit the latest Fed Reserve policy.
The US may well be a declining power, but is still feared.
Iran goes on war alert, fears attack by U.S.
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Kill me and oil stops: Chavez
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You pointed out that as the US grows economically weaker, it may well grow militarily more dangerous, substituting its economic weakness for military strength, attempting to win by war what it cannot win otherwise. I think that the US has no equal in the world to its military strength, but her obvious weakness is the economy. So, we will watch if your dire musings come to past. |
