Part of the problem is saving rates. One percent is not going to entice
anyone.We need a return on our investment to save rather than spend.Of course, the other side of that coin is loan rates. A 3.5% rate on
mortgages is politically nice but hardly realistic. It merely illustrates that
our money is worthless.The entire economy is a train wreck that cannot be
healed by watching the DOW. Perception is not reality. We didn't learn
from this recession so the lesson will be repeated until we do.
It's a good thing that people are paying down debts. The only unfortunately
side effect of that though is that paying down debts means people aren't
putting that money into the economy to fuel demand and it's demand that
creates jobs since business leaders don't and shouldn't create jobs
for no reason.