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To: expat_panama
That's what most people say after reading leftist rants from the Village Voice. Reality is that Americans are already saving --too much. Last Friday's BEA report on the GDP has spending dropping by twice the drop in incomes and this has become a major part of the problem.

If savings is actually a problem then there are structural problems with the financial systems. Banks were DESIGNED to be a place to safely store extra wealth.

207 posted on 02/02/2009 8:05:15 AM PST by Centurion2000 (01-20-2009 : The end of the PAX AMERICANA.)
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To: Centurion2000
"...there are structural problems with the financial systems. Banks were DESIGNED to be a place to safely store extra wealth."

People are putting their money in banks.  The problem is that too many are saving not enough people are borrowing from the banks and spending their loan money.  Banks don't make profits from deposits, they profit from making loans.  Our problem is gloom'n'doom negativity.

Worse, it's downright delusional.  Example: something in the latest GDP press release that nobody's talking about is the fact that while the total product shrank, our personal incomes grew!  It gets better.  Our personal after-tax incomes have been growing for the entire span of our 'recession', so this is the first recession ever where we not only have had an increasing GDP, but we've seen incomes go up too.

Truly amazing!

278 posted on 02/02/2009 10:00:02 AM PST by expat_panama
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