April 23, 2003

YEAH, BUT IN THE END, ALL YOU HAVE TO SHOW FOR IT IS A HOME...

Lending data show UK's spending spree continues (Jennifer Hughes, April 22 2003, Financial Times)
Britons continued spending apace last month, according to a report by the British Banker's Association which showed strong mortgage lending and weak savings rates.

This is an archetypal statement of a particular brand of economic idiocy. Economists prattle on endlessly about how much higher Japanese savings rates are than those in America (or Britain). Unfortunately, the Japanese have no other options of what to do with their money and those savings are all in accounts that pay about .01% interest these days. Meanwhile, in the States, we don't have much in our savings accounts, but we do happen to own our own homes and have 401k's, neither of which are factored into savings rates. Who really has the problem: us or Japan? Posted by Orrin Judd at April 23, 2003 11:26 AM
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