This isn’t a surprise. We are still in the midst of a lingering depression/recession. People need to get by and retirement for many is down the road in hopefully more prosperous times. Right now the kids need shoes and school clothes.
The EU is trying to scare money into risk assets. It may just take the money. I guess folks should have listened to Nigel Farage last year.
There was a time when saving, being prudent, delaying gratification, and being modest was rewarded in this country. That is much less the case now under a Federal Reserve which manipulates interest rates down for the benefit of the Wall Street class.
To paraphrase David Stockman – The world’s central banks have not suspended the market mechanism. They can kick the can, they can lie, they can move assets around on balance sheets, they can even call debts assets. But in the end there is no free lunch.
That is, he proposes measures sure to make even more people poor.
There is an adage in the financial advisor world—go after money in motion.
Welcome to economic bizarro world.
* I gave this speech on April 15th, 2009, in Charlottesville, Virginia. I had forgotten about it, but stumbled across it again today. It deserves a post to ACC.