Back in February I put out a piece called the "Imperial Circle part 2, the feedback loop between rising US asset prices and slowing global growth". From this angle, I wanted to look at other imbalances either financially or economically and have found a lot of them come from this original savings glut that Bernanke highlighted back in 2003. However, while a lot of these factors are structural, many of them are a function of a policy choice, which is worth remembering as this crisis will likely trigger policy changes. However, without changes, these forces are immense and will continue to exert themselves over markets and the global economy. The goal of this note is to combine a lot of macro themes under the umbrella of a meta theme, there is too much global savings.
The Global Savings Glut, a Modern Policy Failure
The Global Savings Glut, a Modern Policy…
The Global Savings Glut, a Modern Policy Failure
Back in February I put out a piece called the "Imperial Circle part 2, the feedback loop between rising US asset prices and slowing global growth". From this angle, I wanted to look at other imbalances either financially or economically and have found a lot of them come from this original savings glut that Bernanke highlighted back in 2003. However, while a lot of these factors are structural, many of them are a function of a policy choice, which is worth remembering as this crisis will likely trigger policy changes. However, without changes, these forces are immense and will continue to exert themselves over markets and the global economy. The goal of this note is to combine a lot of macro themes under the umbrella of a meta theme, there is too much global savings.