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

To: Elroy Jetson who wrote (25323)	11/20/2004 7:42:36 AM
From: Amy J	Read Replies (2) \| Respond to of 306849

Elroy, RE: "Simply eliminate the possibility of infinite credit" Good point. While Greenspan can point the finger at Congress and their horrible, debt-ridden ways, Greenspan should certainly acknowledge he is a huge contributor to the problem as well by making credit too readily available. It's as if Greenspan doesn't want to admit he's out of control with his interest rates, and Congress doesn't want to admit they are out of control with their deficit spending. It's beginning to sound like the US economy is out of control since neither Greenspan nor Congress are being accountable for their actions. Instead they are pointing the finger at someone else, while no one takes significant action to fix the problem. No wonder the dollar is falling so aggressively lately. Obviously, Greenspan needs to be more aggressive in raising interest rates. But Congress most certainly needs to eliminate the deficit spending - they act like irresponsible children spending their parents money. Here's another thing: America's savings rate is only .2% (or some equally low figure, I saw this in either a Yahoo or CNN article), while in 1990 or 1992 it was as high as 7%. This country is saving absolutely nothing. This is ridiculous. Of course, they can always come after those people that have drastically sacrificed to save money. Geez, I remember thinking 7% was horribly low back then. Even when I was in school earning 19k/year, I would save 50% of my income and the sacrifices were huge, let me tell you. Unlike my American peers, I certainly didn't own a car, and instead biked and bussed everywhere, and the trip to the grocery store was a 1.5 hour one-way bus ride rather than a 15 minute car ride. I remember always worrying if my meat might get bad since the trip home would always exceed one hour. Meanwhile, Congress creates no significant incentive for people to save money. Consumption, consumption, consumption, deficit, deficit, deficit. Their answer will be to raise the interest rates. It would never occur to them to take additional action, such as reducing the deficit and encouraging savings, so that inflation isn't the only solution - a painful solution. Regards, Amy J