Americans finally learned to become savers?

Discussion in 'Economics' started by turkeyneck, Oct 20, 2008.

  1. Thats why its going to be Japan-style recession.

    We rehashed this last week.
     
  2. Not spending (borrowed) money and saving money are 2 different things.
     
  3. Thats right.

    And we'll be doing both.

    Borrowing less.

    And saving more.
     
  4. This is what can cause a true depression.

    If Americans close the wallet and take out the scissors to the credit cards, and money stops circulating - game over.

    What scares me, and I hope I'm wrong - is that during the debt-crazed, HELOC, credit is dope bygone days of approximately 2002 to 2006, people were just spending on highly discretionary items as if there was no tomorrow.

    With consumer and business belt tightening, against a backdrop of falling home prices, plunging stock portfolio values, wasted retirement accounts, upward trending unemployment and falling real wages - that belt tightening can be more severe than in past recessions.
     
  5. So for the US economy to function, The average American has to live a 48x leveraged lifestyle?

    Wait how is this a good thing?
     
  6. wave

    wave

    It was all false. False economy, false lifestyles. It's getting ugly out there.
    Here is what I see:

    Lots of empty commercial real estate just sitting there with For lease signs.

    Lots more regular white American citizens working the fast food chain counters.

    Lots of folks not using their Credit Cards.

    A good cleansing is necessary and back to good old-fashioned ways.

    Folks the fun (pain) has only begun.
     
  7. wave

    wave

    Folks wondering why they can't get loans from the banks even when their note is paid off and they have equity. I tell ya why, the banks know what a f#$#$in mess we are in and that the shit has yet to hit the fan and when it does it's going to really stink and they ain't ready to touch it even with a six-foot pole.

    Would you accept collateral that might depreciate drastically over the next two years? That's how this whole mess with Credit Default Swaps got started.

    The MGICs (loan insurers) won't even take the risks any longer.
     
  8. oh i'm sure there are plenty more smart intelligent americans that can be lured into being debt slaves and taking equity out of their home and maxing out their credit cards and taking a out two car loans and sending their kids to college and taking out a loan for that vacation, its the American dream, isn't it??
     
  9. wave

    wave

    Ever wonder why companies promote many techies to management after they get a mortgage? You become less marketable and now have a huge mortgage to support. Yes, they own you now.
     
    #10     Oct 21, 2008