peterb, I find your viewpoint interesting. So far, the FED and the government are worrying that the lenders will not lend the money because the risk is too high. But you are instead implying that the general American public borrowers don’t want to borrow as well. Goldman Sachs is already predicting that the saving rate will go up to 10% this year. So in your scenario, the US will actually become a nation of savers in spite of government reported CPI (which doesn’t count housing costs, but does count rental cost) has started increasing?
So I guess, it will be in fact perfectly safe to take risks at that time when the others are in fear? Because the economy will have strong footing from then on because the saving glut will provide adequate support for the economy going forward?
