Your Schiff fix
"Lastly, savings can always be relied upon whereas credit is ephemeral. Remarks this week from the Chinese premier Wen Jiabao should serve notice to all Americans that the day will soon come when the Chinese stop lending us their umbrellas. When that happens, the average American will be soaked to the bone."
bump de bump.
Wen Jiabao is blowing smoke. Where else are the Chinese going to invest their surplus? Our economy may be doing poorly but it is still the best game in town. Witness the flood of funds, form all over the world into treasury instruments that are effectively paying 0%. Why would hey do it? Because it is better (much better) than the next best alternative.
I remember a time when having available credit was considered the rainy-day emergency option.