Monday, February 16, 2009

Economics Like It's 2000 - No Wealth Since Century Started

Paul Krugman's article from the New York Times raises several interesting points.

The biggest of which is that the US is no more financially better off than it was in 2000. Of course, some of this is to do with the problems created and caused by the banking industry and the lack of regulation for that part of the economy, but there's something else. People are saving less now compared with the 1980's when savings were at nine percent of income.

Telling The Truthiness Says ; Changing the attitude of the banks towards regulation and oversight is achievable, with conditions set before you give them bailout money, or take a stake in them. But trying to change the attitude of banking customers and the public's towards savings and the importance of it in the money supply might be something we don't see the real fruit of for decades to come. Unfortunately, the banking system and the economy won't wait that long.

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