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View Diary: Bloomberg: U.S. debt has shrunk to a six-year low (50 comments)

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  •  You absolutely said this (0+ / 0-)

    You said:

    "This is why the economy has stalled. As savings go up, aggregate demand goes down. Could anything be more obvious? Yes, it's "marvelous." We are achieving the ridiculous goal of self-immolation!"
    How could the 'ridiculous goal of self-immolation' not be construed as 'personal savings rising is a bad thing'.

    Whatever you meant to say, I think it does have merit. But part of the economic crisis was that people were buying houses that they shouldn't have and banks lending money that they shouldn't have. But I would rather have the economy slowed by personal savings growth among the middle than get into the same crisis as before.

    In terms of the economy and recovery, the only thing that hasn't recovered is the housing market. Once this gets going again, and it is slowly growing, the economy will be fine.

    •  Try again, that's not what I'm saying at all (0+ / 0-)

      At no point do I claim savings is the only leakage, my only point was that enhanced private sector savings at a time when high unemployment is persistent and federal spending has been curtailed is a formula for disaster. Couple to that the drain from productive to financial assets and you have a bleeding wound. Only the Fed can close that gap but both sides of aisle reject such options as part of their debt hysteria. What's left? Beats me, but what we're doing is self-immolation.

      In terms of the economy and recovery, the only thing that hasn't recovered is the housing market. Once this gets going again, and it is slowly growing, the economy will be fine.
      Here you're joking, right? There is a thing called the labor market, and that continues to be decimated with the Sept 2012 U-6 is 14.7%.

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