stock market question

DENNIS_CLAXTON at fragomen.com DENNIS_CLAXTON at fragomen.com
Thu Sep 30 11:18:53 PDT 1999


In their NLR aricle from sep/oct 98 (available at http://www.igc.apc.org/globalpolicy/socecon/global/newleft.htm) Robert Wade and Frank Veneroso say "the US has the lowest aggregate savings rate among the OECD countries....It needs foreign savings to sustain its consumption and investment. It also needs a high stock market for the same purpose."

Doug, you often make the point that the stock market has little to do with investment so this need for a high stock market is tied to consumption, right? What's the connection exactly? Credit cards? Overconsumptionism?



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