I’m absolutely stunned. Completely flabbergasted. The Dow dropped below 7,000 for the first time since 1997. Read all about at the NY Times website. This isn’t a small thing, my friends. Like it or not, this crisis is everywhere, and if it hasn’t yet, it’s soon gonna hit you where you live.
But what are we supposed to do? Save, save, save, right? Maybe not.
As Paul Krugman pointed out yesterday, a saving glut is part of what got us into this mess. And I’m sure we all remember when Japan was criticized for not encouraging its citizens to shop the country out of a recession.
So, wait, at a time when my economic future looks more tenuous than ever, I should start spending my money?
I’m definitely not suggesting that, but it is important to be aware of the paradox. For now, save well, spend wisely, and keep your eye open for the turn of the tide. (Krugman’s blog is as good a place as any to watch for that.)