Re: Spending binge

[Martin Watts <ecmjw@xxxxxxxxxxxxxxxxxxx>]

>From the Economist: 'America's spending binge showed no sign of coming to an
end as the personal-savings rate in July hit -0.2%. This was the lowest
level since the rate was first calculated in 1959. Particularly in demand
were expensive durable goods, as America's continuing economic boom left
consumers feeling wealthier than ever."

You guys across the Pacific are starting to worry me. Haven't you heard of
moderation and intertemporal considerations? How much longer can the binge
continue, given the huge trade deficit? When can we expect a stock market
correction? (OK if you knew you wouldn't be in academe!) Step forward JD!
Kind regards
Martin

Martin Watts
Deputy Director
Centre of Full Employment and Equity (CofFEE)
Department of Economics
University of Newcastle
New South Wales 2308
Australia
Email: ecmjw@xxxxxxxxxxxxxxxxxxx
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