Silver Linings? January gains
Consumer spending, personal income, savings rate all rise in January. (The Dow will still probably tank today because of AIG.)
Something we're told about this recession is that consumers should spend more, not save more, to improve economic activity. But if they save more, doesn't that give the beleagured banks more capital? So why doesn't that "count?" Maybe the banks are in too much trouble for that to make a difference.
Something we're told about this recession is that consumers should spend more, not save more, to improve economic activity. But if they save more, doesn't that give the beleagured banks more capital? So why doesn't that "count?" Maybe the banks are in too much trouble for that to make a difference.