Monday, December 15, 2008

A long, weak economy means people are saving more

I'm back, after a long week of moving. Let's get right to it.

I'll be on NPR's News & Notes this afternoon for one of my regular economics discussions and judging by everything I've read over the past week, the tone of the conversation won't be great. In short, there seems to be little in the way of hope for a quick recovery from recession.

Take this headline from USA Today last week: Why Home Values May Take Decades to Recover. 60 Minutes on Sunday ran this piece about another coming wave of foreclosures. One expert they interviewed predicted that the foreclosure mess has only halfway sorted itself out and that 2009 and 2010 will be a mess:

Scary stuff, but apparently it has done at least some good: Americans as a whole have actually started to save money and pay down debt -- for the first time since 1952.

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