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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: DJessen33 who wrote (63370)	6/28/1999 6:04:00 PM
From: Knighty Tin	Respond to of 132070

DJ, But a debt to savings rate ratio would scare the crap out of everyone. And nobody in Washington wants the country layered in crap. Well, the Republicans don't care because their house are on the hills. <g>

To: DJessen33 who wrote (63370)	6/28/1999 6:45:00 PM
From: Sid Turtlman	Read Replies (1) \| Respond to of 132070

DJessen33: Here is a link that somewhat relates to your questions about debt levels and savings rates: ntrs.com You will probably have to click on the June 23 commentary. It is some charts and discussion from Northern Trust's economist Paul Kasriel, pointing out that people's equity in their homes has recently been going up at an uncharacteristically slow rate relative to the value of their homes. The differential, of course, is due to sharply rising debt.

To: DJessen33 who wrote (63370)	6/28/1999 8:05:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

DJ, I think the least appreciated fact about savings is that the money that is left over after we are finished consuming (savings) is what we "should" be using for lending, investing and growing the economy. Much of the lending that occurs that does not come from savings is bank credit which is in reality money printing. So it is much healthier to expand credit from savings, corporate profits of insurance companies and stuff like that than it is from printing money and then living with all the distortions that can create. In our case we are printing too much, borrowing too much from overseas and saving too little domestically. Those are some of the "imbalances" that AG will hopefully try to correct. I'm not holding my breath though. He isn't called "easy Al" on this thread for no reason. Wayne