The Savings Glut

Just in case you didn't realize how incredibly stupid the modern economic talking heads are... allow me to quote Nobel Prize winner... Paul Krugman:

"If you want to know where the came from, then, think of it this way: We're looking at the revenge of the glut.

And the savings glut is still out there. In fact, its bigger than ever, now that suddenly impoverished consumers have rediscovered the virtues of thrift and the worldwide property boom, which provided an outlet for all excessive savings, has turned into a worldwide bust."

So setting aside the fact that a man just asserted that there is even such a thing as excessive savings... let us first start with the facts before we bother refuting the theory. That is to say... before we can blame the crisis on a savings glut... we must show that a savings glut actually exists.




Ummm...

So see? We don't have to bother refuting the silly theory that excessive saving caused the crisis... because there are no savings... excessive or otherwise.

Krugman's arguement isn't just built on sand... its built on the pretense of sand.