Jonesing for the Dow

[Max Sawicky]

>I sure this has been discussed here
>before, but how about a rerun for
>the amateur ?  Does this low 
>savings rate mean that the recession
>will be aggravated when it comes ?
>

Just the opposite.  Less saving means
more consumption and less negative
impact on employment.

More to the point is the timing of
changes in fiscal and monetary policy.
The Fed govt is poised to run budget
surpluses, despite the fact that the
economy has visibly slowed down, which
is the opposite of the appropriate
policy.

MBS