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To: GST who wrote (122280)4/1/2001 11:00:37 PM
From: schrodingers_cat  Read Replies (1) | Respond to of 164684
 
Why is the current account deficit a problem when the dollar is rising against the Euro and the Yen? It seems that we are having no trouble financing our current spending habits. This may be a long run problem but its not something to worry about this year IMO.

If saving did increase wouldn't that imply a drop in consumer spending and wouldn't that be bad at the moment for both our economy and Asia? It seems to me that increased saving is the last thing that the Fed would want to encourage at the moment.