Economy: Deflation Paper, Lost Decade, Savings Up, Housing Wealth Effect, Lottery Winners, Home Owners, Freddie Delinquencies

short paper - Guest Post: The Future - Deflation - Posted by Tyler Durden - Submitted by James Perry - Zero Hedge

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A Faster Lost Decade? - Is the United States economy headed for a Japan-style lost decade? Evoking our February, 2008, item “Faster Markets,” Slate’s Daniel Gross suggests that the deep, ongoing recession in the United States may unfold much more quickly than Japan’s analogous bubble-bust of the 1990s. This is good stuff: … - Float Blog at Interlake Capital

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Consumer Spending: Savings Will Soon Drive Increased Spending - Bill Conerly - I’ve been saying that consumer spending would soon increase.  It has not happened yet, but consumers are now in position to get going.  The key concept is that consumers have not been income constrained, as a group.  In the aggregate, they are simply scared. - Businomics Blog

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The Mysteries of the Housing Wealth Effect - The saving rate has risen, surprise, surprise, surprise. The housing wealth effect is one of the most well-known phenomena in economics. The basic point is that people will spend more as a result of their housing wealth. Estimates of the size of the effect vary, but most are in the range of 5-7 percent, meaning that people will spend 5-7 cents each year out of every dollar of housing wealth.. Because of this wealth effect, it is not surprising that the saving rate has now risen from below zero to above 6.0 percent - Dean Baker Beat The Press Blog

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Lottery Winners & Mt. Pelosi: Ruined by Good Luck - By Bill Bonner - on the fate of lottery winners (read this) and the mountain of money we are creating - Daily Reckoning
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Did Homeowners Cause The Great Recession? - Joel Kotkin - Welcome to the new feudal age. - Forbes

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Freddie Mac Delinquencies and Unemployment Rate - by CalculatedRisk - Yesterday I posted a graph of the Freddie Mac delinquency rate by month since 2005. I was asked if I could add the unemployment rate … so by request ..