7.03.2005

Good Article From Reuters

Econo-Girl likes the analysis on this one. It basically acknowleges that the US, and consequently the world, is heading towards a recession when the housing prices level off.

The lone dissenter mentions that people are not spending more because their house is worth more. Hmmm. Econo-Girl has doubts. It's that "ME RICH NOW. ME SPEND. ME CAN AFFORD. UGH." Not the "ME NEED TO SAVE FIRST."

When will it become macho to save first?

Right now, the Depression era children are dying off. It seems the lessons they learned are dying with them.

2 comments:

jevanking™ said...

It will never be macho to save first.

The Lazy Iguana said...

I know I *SHOULD* save, but spending seems to be more fun.

My grandfather talked with me about the depression. But after taking my finance major classes, something hit me like a ton of bricks.

The depression totally KILLED capitalism as it was known in the time between the Industrial Revolution and The Depression. And the Industrial Revolution killed Adam Smith's vision of classical economics.

So, the lessons learned in the depression might even apply anymore. Yea, you should save and stuff - but unless you were rich in the 1920s there was no way you could have saved enough. Same today, if something really huge hits, savings will quickly dwindle.

I think that the system as we know it today will also collapse and evolve. It has done it before after all.