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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (17060)	2/10/2004 12:19:32 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

Using your strained logic your chart actually shows you that the savings rate peaked in 1976 long before interest rates reached their peak in 1981. economagic.com If this were a stock chart anyone could point out that the trend, or support levels, were broken in 1986. But to see the chart for what it is you have to drop your attachment to the myth. All three of these charts work in combination to help you see trends. "Personal Savings Rate" home.pacbell.net "Private Net Financial Investment" home.pacbell.net "Home Equity Percentage" home.pacbell.net The Reagan era tax cuts removed important tax incentives which inspired saving and capital formation. Once these incentives were removed the results are there for all to see, in spite of fairy tales to the contrary. America started spending their capital creating a huge Keynsian boom and speculative bubble. Once the bubble finishes it's collapse the capital is greatly diminished and replaced with debts. Austrian economics tells you this always happens. It is why the recovery always takes so long after after a bubble. Bubbles destroy capital through mis-allocation. There is absolutely no evidence on any series which shows capital formation during this period of spending. None what so ever. It's merely a myth. Time will bear this out.