Comments on: U.S. Savings Rate to Increase? Thank Goodness! http://www.peridotcapitalist.com/2008/08/us-savings-rate-to-increase-thank.html Chad Brand's stock market and investing blog Fri, 12 Mar 2010 20:02:35 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: Anonymous http://www.peridotcapitalist.com/2008/08/us-savings-rate-to-increase-thank.html/comment-page-1#comment-950 Anonymous Thu, 14 Aug 2008 04:14:00 +0000 http://www.peridotcapitalist.com/?p=622#comment-950 Many people are predicting the savings rate will start to increase but this is not actual evidence, just a theory. Look at it from the other perspective, as prices increase and wages stagnate it is quite possible that savings rate will actually decrease further. People may tighten their belt but that doesn't mean the money will be going to savings, they may be forced to just to maintain their current lifestyle. Maybe in the long, long term like 5 or 10 years from now this will also result in people learning to save, similar to the great depression, but in the short-term I doubt it.<br/><br/>That certainly seems to be the case with the federal government. People though 300 and 400 billion budget deficits were huge, now Bill Gross is calling for $1 trillion deficits in the upcoming years. Many people are predicting the savings rate will start to increase but this is not actual evidence, just a theory. Look at it from the other perspective, as prices increase and wages stagnate it is quite possible that savings rate will actually decrease further. People may tighten their belt but that doesn’t mean the money will be going to savings, they may be forced to just to maintain their current lifestyle. Maybe in the long, long term like 5 or 10 years from now this will also result in people learning to save, similar to the great depression, but in the short-term I doubt it.

That certainly seems to be the case with the federal government. People though 300 and 400 billion budget deficits were huge, now Bill Gross is calling for $1 trillion deficits in the upcoming years.

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