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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (58448)	5/4/1999 10:28:00 AM
From: Mike M2	Read Replies (3) \| Respond to of 132070

Mike, I bet on the kentucky derby - and lost. My first time betting on the horses. I didn't know what to pick so I used Bill Meehan's picks -g- To clear up the new era perspective on the savings rate you made a good point the 401k money ( defined contribution) in many instances replaces the pension ( defined benefit) money. When companies " saved" for employee pensions this was not included in the savings rate calculation - now that corporations have switched to 401ks this money is not included in the savings rate but the treatment seems consistent. Perhaps the 401k pool of money is a larger percentage of national income than the former pension monies but this does not by itself (IMO) explain away the low savings rate. People used to save for more than retirement- what about paying cash for large purchases, college, weddings etc. The low savings rate is what a bear would expect to see in a bubble economy indicating an unsustainable rate of consumption of current income especially when debt is growing faster than income. New Era believers don't seem to question the sustainability of share prices growing faster than GDP for the long term. Mike