[lbo-talk] Question about savings

[Lou Johnson]

"One of the Fed banks did a study during the stock
market boom showing that the decline in savings among
the top 20% made up the bulk 
of the overall decline in saving. They attributed it
to the boom, which inflated people's paper wealth and
made them less likely to save. That's 
probably still going on..."

OK, assuming this is true, then where's the money
going?

Because, from what I read, compared to say, 40 years
ago, production has increased, productivity has
increased, and the top 20% take a bigger share of that
increase, as well as having a bigger share of assets.

Are they burning it, or what?  Spending it on cheese
sandwiches on e-bay?  If there are only a limited
number of ways a person can hold the value of their
money, and most of these seem to be counted as
"savings"?   

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