Amazing. All these years, the financial publications were moaning about the zero percent savings rate and how people were living beyond their means. Now that people have finally woken up and started cutting back, the same publications are moaning that folks aren't spending enough and are saving too much.
There is an interesting/scary article in Time this week about the future of the Chinese economy. Essentially, it says that future success will depend on the Chinese adopting American spending habits and cutting back on their substantial (25% average) personal savings rate. Basically, they want the Chinese to make all of the same mistakes that Americans have been making all these years. When I read stuff like that, I really worry about the future of the world. If the American model of zero savings and sky high debt is what the rest of the world aspires to, we're heading for bigger problems than we already have.
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Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.
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