Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Elroy Jetson who wrote (26971)	4/8/2005 1:03:38 PM
From: Robohogs	Read Replies (1) of 116555

I remember being taught while getting an undergraduate degree in economics and an MBA in finance that ideal consumer behavior for people my age was to consume today and bring future earnings forward. I did not do that but many friends did and they were actually helped by it - better networks of high spending friends, better clothes, owned more RE in hot markets, etc. It seemed to pay off. Other consumers see this and begin to ape this and it spreads. Then, take Jeremy Siegel's first book, "Stocks for the Long Run." If I remember correctly, he argues that for sufficiently long periods, it might even be correct to margin stocks. When top-notch universities are teaching this type of behavior, is it any wonder that we over-consume in the US? Jon PS I could never get comfortable with being in debt. The only times I tried it, it ended in disaster. PSS Of course, I may be too conservative. 50% cold hard cash at the moment.

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