savers caused the financial crisis

[ThriftoRama]

This got me steamed.

» How YOUR Saving Advice Caused The Financial Crisis # The Shark Investor

[kork13]

hahahahahaha ... oh, what have I done!! I'm SOOO ashamed!!

somehow I don't expect that the writer was serious.... the overuse (abuse) of debt is one of the primary root causes of the current mess. Yea, people are starting to spend less/saving more, but really all that is happening is people are borrowing less.

[simpleyme]

who else do the oververspenders have to blame? lord knows they cannot look in the mirror ;-)

there was a car salesman on the news I looked high and low and could not find a clip but he was ranting that people not buying cars anymore were costing him his livelihood and that you could spot his children"they are playing with yours only mine are the ones without shoes"

I had to laugh as come on how many people has this guy sold bad car deals to? if we are responsible for his kids than he is responsible for every kid who is suffering since their parents have huge car payments for cars he sold them.
only give blame never take any seems to be the cry of the masses ;-)

[Broken Arrow]

Hehe. Interesting perspective, but ultimately flawed.

Truth is, savers do contribute to the economy, just in a different way.

When we contribute to our retirement funds, we are also investing in an investment company's financial well-being.

Even when we simply deposit our money in the bank, we may not be stimulating the local clothing shop or electronics store, but we are certainly doing our part to capitalize our banks and credit unions, giving them more capital to operate their business.

As though the hare can blame the turtle for being caught out in the rain....

[Joan.of.the.Arch]

Simplyme, I, too, heard an atrocious presentation on local TV news like that, but it was an interview of the owner of a large car dealership. He was so racist and smug in his statements that I am surprised the station even aired it. Evidently some people whose piece of the pie is shrinking want to point fingers at whomever they happen to despise --even if it is their own customers, eh?

[red92s]

"One day a friend of Joe - Sam - lost his job flipping burgers at McDonald’s. His bosses said that more people cook at home, less people eat burgers and there was no more work for Sam"

Hasn't McDonald's seen a big bump in sales, especially on their inexpensive menu options, as people flock to "cheap calories" during this downturn? The author tells an interesting tale . . . but it's clearly fabricated and has no factual basis.

[KB24]

"rice and potatoes are good because they are inexpensive" - hah!

[jIM_Ohio]

Originally Posted by Broken Arrow

Hehe. Interesting perspective, but ultimately flawed.

Truth is, savers do contribute to the economy, just in a different way.

When we contribute to our retirement funds, we are also investing in an investment company's financial well-being.

Even when we simply deposit our money in the bank, we may not be stimulating the local clothing shop or electronics store, but we are certainly doing our part to capitalize our banks and credit unions, giving them more capital to operate their business.

As though the hare can blame the turtle for being caught out in the rain....

what he said.

[mommyof4]

Originally Posted by Broken Arrow

Hehe. Interesting perspective, but ultimately flawed.

Truth is, savers do contribute to the economy, just in a different way.

When we contribute to our retirement funds, we are also investing in an investment company's financial well-being.

Even when we simply deposit our money in the bank, we may not be stimulating the local clothing shop or electronics store, but we are certainly doing our part to capitalize our banks and credit unions, giving them more capital to operate their business.

As though the hare can blame the turtle for being caught out in the rain....

Well said. And I think those of us who are savers are going to be the ones who eventually get us out of this mess- we're the ones who will be still paying our bills, and not declaring bankruptcy, and keeping our houses and cars.

[tripods68]

Originally Posted by Broken Arrow

When we contribute to our retirement funds, we are also investing in an investment company's financial well-being.

Even when we simply deposit our money in the bank, we may not be stimulating the local clothing shop or electronics store, but we are certainly doing our part to capitalize our banks and credit unions, giving them more capital to operate their business.

As though the hare can blame the turtle for being caught out in the rain....

Totally agree on this.

Some people are just shortsighted and often times lacks understanding how "investment capitals" are deployed throughout the economy which ultimately helps pay worker's wages. Without on-going capital investments this economy would not grow.

[CoreAssets]

I don't really understand this premise?

[Broken Arrow]

Originally Posted by CoreAssets

I don't really understand this premise?

I believe the author in that link is simply talking nonsense. The "beauty" of the internet is that anyone can write an op-ed and publish it online. Sound logic is not a pre-requisite.

[Aleta]

I personally think that much of the problems today is that there are too many restaurants, coffee shops,etc. When I was growing up, we had very few restaurants. We had a couple of drive-ins, a few icecream drive-ups, etc.

That article got me to thinking about the amount of food establishments within a 2 mile stretch of where I live. The numbers are staggering. You have to count the grocery stores, gasoline food marts, even now Walgreens has a coffee section in their stores. Do you think that all of these food establishment can succeed? I don't think so.

What I can add is that those who don't save are usually the first ones at your door asking for a loan - that they may or may not pay back.

[GREENBACK]

I guess the article is in jest but there really are those who believe we should spend like fools to get the economy going. I guess we'll just deal with the next bubble when it comes along. I don't really spend any more or less than I did before this mess so my conscious is clear about the dude losing his burger flipping job.

[Bluestreak]

Originally Posted by mommyof4

those of us who are savers are going to be the ones who eventually get us out of this mess- we're the ones who will be still paying our bills, and not declaring bankruptcy, and keeping our houses and cars.

Agreed. Savers will also be starting new businesses and creating more jobs.

[rob62521]

I agree with what you all wrote, but I also have a different take on it -- how mindless of Joe to believe everything written on a blog. I think everyone's situation is different. Some folks can't afford to buy anything because they have bought more things than they can pay for so they should stop. Others can buy things because they have the means to do so, but want a good deal. I think whomever wrote that it was an oversimplification was on the money.