GDP, M&A, EBITDA, P/E, NASDAQ, Econo-thread Part 13

[Sten Sture]

Originally posted by el freako

Japan's household savings rate:

1985: 18.5%
1990: 13.4%
1995: 11.9%
2000: 10.3%

Japan's Gross National Savings rate:

1985: 32.0%
1990: 33.5%
1995: 29.6%
2000: 27.7%

[

for those that may be kept awake by wondering at such things, here are the US savings rates from the same OECD source e.f. noted

USA's household savings rate:

1985: 9.2%
1990: 7.8%
1995: 5.6%
2000: 2.8%

USA's Gross National Savings rate: (savings as a % of Nominal GDP)

1985: 17.2%
1990: 15.9%
1995: 16.4%
2000: 18.0%

[Imran Siddiqui]

Thank you! Now I can go to sleep .

Spend, spend, spend!!

[Ted Striker]

Microsoft gave away $870 million in dividends for us to all spend. Thoughts?

http://apolyton.net/forums/showthread.php?threadid=74268

[HershOstropoler]

Sten:

The US should not get savings rates like Japan. You got an advantage in capital productivity. But you have to make a choice between investment and consumption when the capital import game ends.

Btw, the Gross National Savings rate fell substantially in 2001 and 2002 with the business profits collapse and deficit spending...

A propos, is the bond market now totally immune to evergrowing deficits?

[DanS]

"evergrowing deficits"

Where? What? Who?

"Thoughts?"

It's about time. Wonder what they're going to do with the other $42 billion.

[TCO]

Originally posted by Ted Striker
Microsoft gave away $870 million in dividends for us to all spend. Thoughts?

http://apolyton.net/forums/showthrea...threadid=74268

They need to shrink that cash stash. But I would prefer they repurchased stock because it is better tax wise for the investors.

[Ted Striker]

Originally posted by HershOstropoler
The US should not get savings rates like Japan. You got an advantage in capital productivity. But you have to make a choice between investment and consumption when the capital import game ends.

You're assuming the "capital import game" is going to end. The USA is the best investment in the history of investment. That's not chest pumping, that's just common sense. People put their money here because they get susbstantially better returns than anywhere else.

Secondly there doesn't have to be a "choice" between consumption and investment.

We're Americans dammit, and it's our job to spend money and be the locomotive. Let the Japanese waste money by keeping it in the piggy bank under the floorboards. Reminds me of the guy that breaks his back his whole life but keeps a million dollars worth of money stashed in the cast iron safe out in the barn.

Spend it baby!

[Imran Siddiqui]

Wutang!

Spend it!

[Colon™]

Originally posted by Ted Striker


You're assuming the "capital import game" is going to end. The USA is the best investment in the history of investment. That's not chest pumping, that's just common sense. People put their money here because they get susbstantially better returns than anywhere else.

Well I hope Dan now understand why I and EF keep bugging you guys with data to show there's little that's superior about the US except of the capability to boast second to none.

Secondly there doesn't have to be a "choice" between consumption and investment.

Either you consume, either you save (and fund investments), it's really that simple.

Where is Spikey when you need him.

[Colon™]

Originally posted by DanS
"evergrowing deficits"

Where? What? Who?

The US, negative $300 billion budget swing in one year, Bush.

[TCO]

Originally posted by Colon


The US, negative $300 billion budget swing in one year, Bush.

It's not his fault. Clinton set him up the bomb.

[TCO]

Originally posted by Colon


Well I hope Dan now understand why I and EF keep bugging you guys with data to show there's little that's superior about the US except of the capability to boast second to none.

Is that what's he doing? Too bad he can't make cogent arguments. And too bad a few isolated statistics about select year performance don't really prove "There's little superior". Would think that would take a much more encompassing view...rather than little snippet statistic dumps.

[DanS]

Clinton set him up the bomb.



Re the deficits, you get two years of deficits and suddenly it's "evergrowing"?

I'm a budget hawk, but even I wouldn't call it anything like that. A couple of years of deficits is no big deal, especially when the % is below the GDP growth rate.

Edit: Perhaps ef will have the "real" deficit percentages. He once told me what numbers he was looking at for this, but I've clean forgotten it.

[Colon™]

Is that what's he doing? Too bad he can't make cogent arguments. And too bad a few isolated statistics about select year performance don't really prove "There's little superior". Would think that would take a much more encompassing view...rather than little snippet statistic dumps.

Too bad those dumps were enthusiastically used a couple of years ago to prove the miracle. Now those stats can't be used anymore it's just a matter of faith. Noy much IMHO.
Really, you'll have to come with something from impressive with an acceleration from sub-par productivity growth to mediocre to show the US has undergone a transformation to withstand any kind of economic imbalance.

Originally posted by DanS
Clinton set him up the bomb.



Re the deficits, you get two years of deficits and suddenly it's "evergrowing"?

Why assume it's just going to be a couple of years? I don't see why you would assume the US would have a future of surpluses because the bubble provided one in a couple of years. I and Roland noted before that a major component of the surpluses came directly from stock market bubble via capital gain taxes. The rest of the surplus came from fiscal discipline in the early 90's and the usual gains of a boom. Now there's no boom, no stock market bubble, no fiscal discipline and an expensive war looming.

[DanS]

"Why assume it's just going to be a couple of years? I don't see why you would assume the US would have a future of surpluses"

Read carefully. I didn't say anything about surplusses. Roland made a statement that the deficits were "evergrowing". Then I suggested that having only two data points to back you up is pretty weak. Further, I suggested that deficits of the type we are running now is no big deal, considering the circumstances and general magnitude.