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To: Skeeter Bug who wrote (123726)	4/17/2001 12:55:02 PM
From: GST	Read Replies (1) \| Respond to of 164684

Skeeter: Good post. People have balance sheets just as companies do - and the balance sheets of both people and companies are in need of repair. This is another way of stating that savings must increase in order to put the economy on a more sound footing.

To: Skeeter Bug who wrote (123726)	4/17/2001 8:48:20 PM
From: Victor Lazlo	Read Replies (1) \| Respond to of 164684

<<is the spending trend looking ustainable for the next several years? >> Skeeter putting aside the obvious pessimistic bias of "dismal.com" as a source of any info at all, it would look unsustainable if you take the Fed data at face value. This perspective is from dismal. The big assumption in this is that the credit is going to pay month-to-month bills. What if people are using credit so they can still contribute to a 401k that is matched 100% by their employer? Would you? That's a 100% tax-deferred gain every pay period. Do you believe the govt's inflation numbers? Even though they do not at all reflect how people really live? I know lots of people, including the guy in the mirror, who surf the intro credit card rates. Lower than after-tax 1st morgtage rates; it's great. Why not do it? At times I've made principle payment advances on my home mortgage with CC intro rates, they can be so low. And then 5 mos later when it comes due I pay them off. So i could show up as consuming less, yet borrowing more. sure. This article to me is more reliable and direct than the "savings" yardstick that the Fed uses. I think this data are more legit than the govt's bogus "savings" "measurement" but there are still flaws, and there are still leaps of logic the Fed is making here. So it's open to interpretation to some degree. Victor