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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?


To: NOW who wrote (2754)6/27/2003 2:14:07 AM
From: GraceZ  Read Replies (1) | Respond to of 4905
 
The Fed can only make money available, it is people that decide what to do with it.

I just looked at the long term charts and consumer spending has been reasonably constant, in other words, it has steadily increased from 1992 on at a constant rate. But debt service as a percentage of disposable income has been dropping from the middle of 2001. Meanwhile bank savings deposits have risen steeply from 2001 on and demand deposits reversed trend in 2001 (after dropping steadily from 1994). People are putting a lot of that money in the bank.