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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (40625)	9/1/2005 3:39:16 PM
From: ild	Respond to of 110194

Divergence today: retailers down, financials up.

To: CalculatedRisk who wrote (40625)	9/1/2005 4:04:00 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

we are doing it in the "GOOD TIMES" of a recovery as opposed to the depths of the depression. Let me add an extra "whoop whoop" to your congratulation! Mish

To: CalculatedRisk who wrote (40625)	9/1/2005 5:06:46 PM
From: redfrecknj	Read Replies (1) \| Respond to of 110194

Look carefully at what was reported. The personal savings rate, an ancient number reported by the Fed, is a simple calculation wherein personal expenditures are subtracted from monthly income, and savings are deduced. This month we saw the number go negative. Just a couple of examples of why this perspective is not particularly helpful. If a position in my IRA goes up $25K this month, I sell it, and don't withdraw the money, I think anybody would say I "saved" it. But the stats from your Fed and the press say I'm just as profligate as everybody else with no IRA: my savings are not counted. Another example: one of my best friends and his wife have been planning for ten years to cash out of San Diego and retire to Palm Springs, where housing about half as expensive. The equity in their house here, which they've never borrowed out, will allow them to pay cash for their retirement home and have money left over to live on in retirement. Is this savings? You and I think so, your Fed doesn't. To say the least, our methods of counting savings are parsimonious.