On Fri, 2004-01-23 at 08:42, Ross Werner wrote: > On Fri, 23 Jan 2004, Andrew Jorgensen wrote: > > > > Are you kidding? There's a reason the interest rates are low right now, > > > don't invest, spend spend spend, take out a loan and spend some more! > > > The economy needs you! ;) > > > > Investing /is/ spending and helps the economy immensely. Saving is also > > spending because the money I put in the bank gets loaned back out to > > someone else who is more likely to "spend spend spend" than I am, or > > invested, which again allows someone else to spend it. > > IANAE (economist) but I seem to remember hearing that, even though this is > true, there /is/ some reason why if everyone seems to be saving money, > even though it's loaned out to other people the economy doesn't do as > well. And when people spend a lot, vice-versa. Even though the bank will > lend out your money to people who /will/ spend it.
Seriously this time, I think you are right and that's exactly why Mr. Greenspan plays with the interest rates: to encourage folks to not save so much in times like this, or to save more in times of plenty. I don't claim to understand exactly why, nor do I really endorse spending all your money in the name of helping the economy like I jokingly suggested above. That being said, you gotta live a little now, I mean, what if you put it all away for retirment and then die when you are 40 of a heart attack? :) Bryan ____________________ BYU Unix Users Group http://uug.byu.edu/ ___________________________________________________________________ List Info: http://uug.byu.edu/cgi-bin/mailman/listinfo/uug-list
