Re: Changes in capitalized rents: part of national savings?

sinister wrote:

From
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/28/AR2005082800730_2.html

"More recently, a debate has begun over the nation's savings rate, which officially hovers just above zero. When Congress returns in September, the House Ways and Means Committee will try to put together legislation to raise personal savings through tax credits and other incentives. But according to David Malpass, chief global economist at Bear Stearns & Co., the United States is accumulating savings hand over fist. The country's pool of liquid savings grew by $1.5 trillion last year, he said, and U.S. households remain the world's largest creditor, with $37 trillion in financial assets.
"The problem, Malpass said, is that the official savings rate measure does not consider economic gains from patents, innovation, capital gains or land appreciation."



Should it?

Cap gains are cap gains; those are not savings. They're by definition profits.

"Innovation"? Now another Officially meaningless word.
And I have no idea how anybody could possibly hallucinate
that land appreciation or patents could be considered
"savings". What about gambling winnings, then?

Whomp out a second and speculate on land with a
balloon, all-back-end mortgage, take the difference
and it's "savings". Paging Mr. Ponzi....

What this country needs is a good nickel (5%) rate
hike....

--
Les Cargill
.

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