Hebeler Article
Very problematic issues in our society...
"There are those that say the savings rate doesn’t matter. This argument was voiced when investments grew so much during the late nineties. In an effort to keep consumerism going, some economists said that people didn’t have to add to savings because investments had grown so much on their own. Then the market fell, and we didn’t hear from these economists again until the recent escalation of home prices. Now they have again come out of their scholarly cubicles with the same story based on the theory that home prices will continue to grow, and equity growth will be recovered sometime in the future as the population downsizes their homes or takes out additional debt using homes as collateral. Never mind that homes as investments are equivalent to illiquid highly leveraged long term securities which would be shunned by the average person if they had a name other than home." -- Henry Hebeler
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