Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (132716)	8/15/2005 5:18:34 PM
From: carranza2	Read Replies (1) \| Respond to of 793928

Since history does repeat itself, I was impressed by Roach's analogy to the 1970s and his point that during that era the consumer saved a lot more than he does now, which is zero. Roach failed to note that the consumer is acting more or less rationally from his perspective as there is no reason to save when his home is appreciating at a 20% clip per year and can be used as a personal ATM machine. Of course, what is rational in an individual sense may not be rational from a national perspective, which I think is what we have here. The structural imbalances in the US economy can be timely corrected by addressing the twin deficits. And one way to address the trade deficit effectively is for the US consumer to save. The budget deficit can be cured by a tax hike and a reduction in spending. A tax hike of course will make it that much more difficult for the consumer to save. The piper has to be paid, there is no free lunch, etc.