walkitout (walkitout) wrote,
walkitout
walkitout

Where the Real Journalists Hang Out: not in this country

http://business.theglobeandmail.com/servlet/story/RTGAM.20090116.wcokedrosky16/BNStory/crashandrecovery/home?cid=al_gam_mostemail

I question that link.

Anyway, after reading an entertaining story in another paper online about how to save hundreds of pounds a year by making your own mature cheddar and pickle sandwich at home instead of buying it at Asda, and bringing your own Tetley's tea bag and milk, same, I ran across this breathtakingly concise and insightful bit of commentary on the unusual phenomenon of a positive savings rate in the US and what it means for the world economy.

Everyone else just says, wow, great for us as individuals, not so great for the economy. This article runs down the numbers. My fave quote so far:

"At a 3-per-cent savings rate, the United States will see $3.8-trillion showing up next year in the banking system just from domestic savers. At 7 per cent, almost $9-trillion will come rushing in as part of the savings tsunami. It is a fire hose of money pointed at the banks, and it's just beginning."

ETA: The commenters think the numbers are off by an order of magnitude.
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