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Source:
To Spend or to Save? Trick Question
DAVID LEONHARDT
NYT, February 10, 2009
http://www.nytimes.com/2009/02/11/business/economy/11leonhardt.html
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof. —John Kenneth Galbraith
Putting aside its incredible product line and pipeline of more, its still attractive valuation relative to earnings, and its $100 per share of cash that may be used for a dividend soon, Apple's stock has gone parabolic. And, parabolic moves always end one way, back to the place where the parabolic move began. Now, AAPL can of course power higher to who knows where in this move but the largest market cap stock in the world has now entered a tenuous phase, strictly technically speaking. But I digress. German investor confidence, the ZEW, in the next 6 months rose back...
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February 13th, 2009 at 10:05 am
A clear picture, I think, showing that much of what was perceived as boom times in recent years was really borrowing from the future. Now we are moving into the future… what we see now as a slump is really a return and readjustment. Too many cars, too many houses, too much of everything… then, suddenly we don’t need it all anymore. But all our investment was based on that notion that it was a sustainable reality, so there will be pain.
And the government and leading economists want us to borrow more to keep it going.
February 13th, 2009 at 12:32 pm
Hope springs eternal.
I think if you could overlay the recessions that chart would show that they all caused people to pull back and save more. All but 2001 but that was a strange recession anyway. Kind of a plastic one. No real shoe leather on that one. So what is the relationship between the savings rates and recessions?