Comments on: The global savings glut and the current crisis http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/ Sat, 21 Nov 2009 16:40:10 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Interesting Stuff - Marijuana Growing http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/#comment-127018 Interesting Stuff - Marijuana Growing Wed, 11 Mar 2009 14:42:51 +0000 http://blogs.cfr.org/setser/?p=4397#comment-127018 [...] drove "investors towards riskier assets." Brad Setser of the Council on Foreign Relations believes that Americans borrowed too much and Asians saved and lent too much to Americans [...] drove "investors towards riskier assets." Brad Setser of the Council on Foreign Relations believes that Americans borrowed too much and Asians saved and lent too much to Americans

]]> By: ZIRP IN THE YEAR OF THE OX « Culture of Life News http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/#comment-125562 ZIRP IN THE YEAR OF THE OX « Culture of Life News Tue, 17 Feb 2009 16:20:59 +0000 http://blogs.cfr.org/setser/?p=4397#comment-125562 [...] The Global Saving Glut and the U.S.  concocted this story about a ’savings glut.’  Brad Setser a supposed ‘expert’ in Chinese economics, fell in line with that imaginative and silly [...] [...] The Global Saving Glut and the U.S.  concocted this story about a ’savings glut.’  Brad Setser a supposed ‘expert’ in Chinese economics, fell in line with that imaginative and silly [...]

]]> By: The velocity of money and the credit crisis at John Barrdear http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/#comment-124175 The velocity of money and the credit crisis at John Barrdear Mon, 02 Feb 2009 14:25:01 +0000 http://blogs.cfr.org/setser/?p=4397#comment-124175 [...] a global savings glut, especially after Ben Bernanke himself mentioned it back in 2005.  But, as Brad Setser says, “the debtor and the creditor tend to share responsibility for most financial crises. [...] [...] a global savings glut, especially after Ben Bernanke himself mentioned it back in 2005.  But, as Brad Setser says, “the debtor and the creditor tend to share responsibility for most financial crises. [...]

]]> By: df http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/#comment-122988 df Fri, 23 Jan 2009 14:33:22 +0000 http://blogs.cfr.org/setser/?p=4397#comment-122988 well all in all it all sums up to : well nothing new under the sun. We ve seen the scheme already and it was obvious that all this was bound to happen 10 years ago. Savings glut has been caused by huge growth with spending habits following with a delay. That also had already been seen. Protectionism will rise since it has too. It is a good thing that it does. Free trade has led to massive global pollution and social disorder. Free trade has been part and parcl of the present situation. Yes well all in all it all sums up to : well nothing new under the sun. We ve seen the scheme already and it was obvious that all this was bound to happen 10 years ago.

Savings glut has been caused by huge growth with spending habits following with a delay. That also had already been seen.

Protectionism will rise since it has too. It is a good thing that it does.

Free trade has led to massive global pollution and social disorder. Free trade has been part and parcl of the present situation.

Yes

]]> By: A New Meme: Blame It on Beijing (and Seoul, and Riyadh…) | Economist Blog http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/#comment-122858 A New Meme: Blame It on Beijing (and Seoul, and Riyadh…) | Economist Blog Thu, 22 Jan 2009 02:58:01 +0000 http://blogs.cfr.org/setser/?p=4397#comment-122858 [...] Thinking in terms of systems of supply and demand is a very useful disciplining device. And here I think resorting to this framework, even allowing for distortions in the markets, can be useful, for it reminds one that the outcome (current account balances or the mirror image, financial account balances, and interest rates) are the equilibrium outcome of supply and demand for saving. (A related, but distinct, perspective is Brad Setser’s creditors/debtors story.) [...] [...] Thinking in terms of systems of supply and demand is a very useful disciplining device. And here I think resorting to this framework, even allowing for distortions in the markets, can be useful, for it reminds one that the outcome (current account balances or the mirror image, financial account balances, and interest rates) are the equilibrium outcome of supply and demand for saving. (A related, but distinct, perspective is Brad Setser’s creditors/debtors story.) [...]

]]> By: A New Meme: Blame It on Beijing (and Seoul, and Riyadh…) | 1800blogger http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/#comment-122857 A New Meme: Blame It on Beijing (and Seoul, and Riyadh…) | 1800blogger Thu, 22 Jan 2009 02:57:44 +0000 http://blogs.cfr.org/setser/?p=4397#comment-122857 [...] Thinking in terms of systems of supply and demand is a very useful disciplining device. And here I think resorting to this framework, even allowing for distortions in the markets, can be useful, for it reminds one that the outcome (current account balances or the mirror image, financial account balances, and interest rates) are the equilibrium outcome of supply and demand for saving. (A related, but distinct, perspective is Brad Setser’s creditors/debtors story.) [...] [...] Thinking in terms of systems of supply and demand is a very useful disciplining device. And here I think resorting to this framework, even allowing for distortions in the markets, can be useful, for it reminds one that the outcome (current account balances or the mirror image, financial account balances, and interest rates) are the equilibrium outcome of supply and demand for saving. (A related, but distinct, perspective is Brad Setser’s creditors/debtors story.) [...]

]]> By: ReformerRay http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/#comment-122312 ReformerRay Tue, 13 Jan 2009 18:07:25 +0000 http://blogs.cfr.org/setser/?p=4397#comment-122312 Don - Can't you see the inconsistency in your first proposition, that nations have exported themsevles to propserity and that the habit will be very hard to break and then your next sentence call for cooperation? don responds: The policy of exporting the nation to prosperity has a long tradition and many examples to recommend it. I have long argued that the policy would not voluntarly be foresaken. The habit will be very hard to break, but it is leading ot unsustainable imbalances. What is needed now is cooperation and agreement. Cooperation and agreement has been sought consistently by the U.S. for 3 decades. Your position should be that any nation that is unhappy with a "unsustainable imbalace" because the imbalance is reducing the wealth and power of that nation, should take unilateral steps to correct the situation. Why should a trade surplus nation cooperate? The have worked very hard to create a trade surplus - and it is working for them. Any change must be caused by the U.S. - unilateraly. Your first statements leads to that conclusion. Don – Can’t you see the inconsistency in your first proposition, that nations have exported themsevles to propserity and that the habit will be very hard to break and then your next sentence call for cooperation?

don responds:
The policy of exporting the nation to prosperity has a long tradition and many examples to recommend it. I have long argued that the policy would not voluntarly be foresaken. The habit will be very hard to break, but it is leading ot unsustainable imbalances. What is needed now is cooperation and agreement.

Cooperation and agreement has been sought consistently by the U.S. for 3 decades. Your position should be that any nation that is unhappy with a “unsustainable imbalace” because the imbalance is reducing the wealth and power of that nation, should take unilateral steps to correct the situation.
Why should a trade surplus nation cooperate?
The have worked very hard to create a trade surplus – and it is working for them.

Any change must be caused by the U.S. – unilateraly. Your first statements leads to that conclusion.

]]> By: Massimo GIANNINI - M.G. in Progress http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/#comment-122305 Massimo GIANNINI - M.G. in Progress Tue, 13 Jan 2009 17:00:23 +0000 http://blogs.cfr.org/setser/?p=4397#comment-122305 The "savings glut" theory it's a kind of "conspiracy theory". Alan Greenspan elaborated on that in his testimony in 2005 and I discussed it <a href="http://mgiannini.blogspot.com/2008/12/recession-uncovers-what-auditors-cant.html" rel="nofollow">HERE</a>. One could wonder why nothing was done about it... The “savings glut” theory it’s a kind of “conspiracy theory”. Alan Greenspan elaborated on that in his testimony in 2005 and I discussed it HERE. One could wonder why nothing was done about it…

]]> By: MFMartin http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/#comment-122291 MFMartin Tue, 13 Jan 2009 14:43:19 +0000 http://blogs.cfr.org/setser/?p=4397#comment-122291 The "savings glut" theory looks like a repackaged version of Say's Law -- that supply creates its own demand. Focusing the analysis of the global economic crisis only on the financial side can create misleading images of the economic dynamics. While I can see an argument that China and other nations holding excess foreign reserves facilitated the economic crisis, the main force driving the crisis came from the United States and to a lesser extent, Western Europe. The real danger of the "savings glut" theory is that some people will use it to deny the need for the United States and Europe to raise their savings rates and curtail their fiscal, trade and current account deficits. The “savings glut” theory looks like a repackaged version of Say’s Law — that supply creates its own demand. Focusing the analysis of the global economic crisis only on the financial side can create misleading images of the economic dynamics. While I can see an argument that China and other nations holding excess foreign reserves facilitated the economic crisis, the main force driving the crisis came from the United States and to a lesser extent, Western Europe. The real danger of the “savings glut” theory is that some people will use it to deny the need for the United States and Europe to raise their savings rates and curtail their fiscal, trade and current account deficits.

]]> By: On “The global savings glut and the current crisis” « Grok Archive http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/#comment-122263 On “The global savings glut and the current crisis” « Grok Archive Tue, 13 Jan 2009 05:08:58 +0000 http://blogs.cfr.org/setser/?p=4397#comment-122263 [...] current crisis” In Uncategorized on January 13, 2009 at 5:08 am veerar begins reading the global savings glut and the current crisis. stops after a bit. “hmmm. surely he cant be serious”. reads a bit [...] [...] current crisis” In Uncategorized on January 13, 2009 at 5:08 am veerar begins reading the global savings glut and the current crisis. stops after a bit. “hmmm. surely he cant be serious”. reads a bit [...]

]]>