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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: RMF who wrote (17209)	2/2/2007 10:14:09 AM
From: longnshort	Read Replies (2) \| Respond to of 71588

Blame it on FDR and LBJ

To: RMF who wrote (17209)	2/2/2007 11:48:45 AM
From: TimF	Read Replies (1) \| Respond to of 71588

Not just the top 10% have 401Ks, IRAs, and taxable security portfolios. A ton of money has poured in to each of those category. In any case if your talking about a national savings rate, its doesn't matter if it comes from the top 75% the top 10%, or the top 0.0000001%. As long as the money is available for investment. The personal savings rate/debt level of a number of people might be an issue, and someone else saving or investing a lot doesn't keep them from having debt problems, but that issue is not the same issue as "the national savings rate" which is an issue about the level of domestic funds available for investment. Traditionally a much smaller amount of money was put in securities and a much later amount was put in savings accounts. Obviously when that money is pulled from banks and put in to securities the "savings rate" will go down, because it doesn't consider securities. From the perspective of the "savings rate", buying stocks is no different than using the money to buy a wide screen TV, but in reality it is very different. The debt load of the average American isn't directly relevant to the issue , its a separate issue. "Not relevant" doesn't mean "not important", just not strongly related to the issue that was being discussed.