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September 19, 2007


Bonapart O Cunasa

But another explanation for a falling consumption-wealth ratio could be rising inequality. If more of the wealth is owned by the rich, but the rich consume less of each extra dollar, then this is what you'd observe - with no implications for the foresight of American households.


Various commentators believe that the Man on the Clapham Omnibus is actually the bellweather of the economy. The drop in consumption is quite simply when he feels worried ( put a bit aside for a rainy day) and when the tills are ringing it's because he feels good about the future. The wealth effect is because - as every good fund manager knows - check what the little man is doing en masse - and then do the exact opposite.

Laurent GUERBY

I'm curious as how net worth is estimated, does the Fed knows the exact price of every house and parcel of land in real time?

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