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I'm puzzled by some things.

Greenspan seems to be under the impression that capital accumulation is in need of shoring up by the general public.

If this is true, we should be seeing some shortage of investable capital. And if that is true, there should be an abundance of relatively safe, relatively high-profit capital investments.

Yet the best-run US companies are building up historically massive amounts of uninvested and very-short-term invested cash.

If the demonstrated experts at putting money to work are unwilling to make capital investments, what would be the benefit of having a lot of amateurs do so?

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Here's another thought. I'd be willing to bet that there are three subpopulations of Americans:

1. Those who are borrowing (and spending) a lot
2. Those who are saving a lot
3. Those who aren't doing much of either.

Any sort of disruption that interferes with the ability of group (1) to continue their present course, will quickly and massively increase the country's overall private savings rate, WITHOUT any change in the behavior of the other two groups.

And I'm thinking that while group 1 gets a lot of publicity, it is not as big as some people make it out to be, and that groups 2 and 3 aren't as vulnerable as some would think to the (currently) most widely feared economic crunch: the collapse of bubbles in single-family-residential real estate. Because most of them either are renting, or are mortgaged well within their means on (or perhaps own outright) properties they intend to live in for many years to come.
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