Mutual fund sales have slowed somewhat, but the public now has more of its savings capital at risk than at the peak of 1972, when the Nifty Fifty were comparably priced to the Nifty Twenty today.
Since savings finance capital investment, lower savings equal weaker economic growth.
Savings become capital investment funds, new plants, machinery or improved technologies and the economy surges forward.
FORBES: Our Denial of Nature Undermines the Economic Recovery
This would provide a continuing gusher of new savings for capital investment, resulting in more jobs and higher wages.
So this borrowing does not have the negative economic effects of deficit spending in crowding out the savings and capital for private investment, and possibly increasing interest rates.
In Crash Proof , I talked about how our economy suffered from the co-morbid diseases of asset bubbles, excessive debt and consumption, and insufficient savings, capital investment, and production.
Higher government borrowing also tends to divert savings and investment capital that would otherwise flow into the jobs-creating private sector.
FORBES: Cowardice Of Compromise As Spineless Politicians Sink U.S. Deeper Into Debt
If part of the revenue is used to reduce the federal debt, more of savings go into capital investment, enhancing growth.
The consumption goes into consumer spending, and the savings goes into capital spending (which is actually what makes us richer and more prosperous).
FORBES: President Obama's State Of Disunion: Half of America Is In a Trance
Sovereign debt issuance sucks up capital (savings) that corporations or individuals could use for their own purposes.
Infrastructure still needs more investment, and access to capital and savings remains problematic.
Savings and preservation of capital are paramount, and you can see the evidence as investors continue to flee equity mutual funds in favor of bond funds.
The venture capitalist or private equity specialist must study and comprehend how best to allocate pools of capital (savings) to their most productive, efficient and profitable use.
FORBES: Mitt Romney's Uphill Battle Against Anti-Capitalist Conservatives
Not only do they impoverish the citizenry thanks to an evisceration of savings, they force capital allocators who fund all economic growth to protect their funds in unproductive sinks of wealth (think gold, land and art) over the growth parts of the economy.
Without it, farmers are obliged to sell part of their meagre crops of maize and beans, their diet has suffered, and they lack the savings or access to capital to bounce back after drought, argues Tania Bacelar, an economist at the Federal University of Pernambuco.
In short, were Wal-Mart given the freedom to open its stores in the largest city in the U.S., not only would many of its citizens receive instant raises, but the realized savings would expand a capital base that is presently a bit subdued as evidenced by difficult economic times.
Investment capital comes from savings, and when governments borrow, savings are diverted from private investment.
The role of human capital in investment decision making is greater than just providing a source for investment capital and retirement savings.
Capital, or savings invested in new production, raises future growth and consumption.
Savings also creates pools of capital for investment purposes (who will fund the next neighborhood coffee shop?) and to keep interest rates low.
Devaluation means inflation, capital flight (and who wants to hold a depreciating currency?), increased cost of capital, destroyed savings and a lower standard of living.
You can make up some of the gap of this lost capital with domestic savings, but the rest has to be borrowed at a price.
FORBES: India Has Lost At Least A Half-Trillion Dollars To Corruption Since Independence
The AFJP system in Latin American has helped create a vast stock of domestic savings that can fund local capital markets and lend money for projects like toll roads.
CENTERFORSECURITYPOLICY: Argentina��s Kirchner seizes private pension funds
Increased savings would increase the stock of capital necessary on the way to plentiful jobs.
FORBES: With Unemployment Benefits, It's the Invisible That Truly Matters
The other half would come from savings and reallocation in the current capital budget, she said.
You have to be as careful about certain retirement savings moves as you are about capital gains.
Gold has clearly been the perfect place to bury your savings as the returns to equity capital have been overwhelmed by the risks.
Nonetheless, the most likely scenario remains that the Dilma government, reaching new highs in popularity despite a slowing economy, will use its ample political capital to change the savings account rule before the May meeting and so allow for a larger rate cut of 50.
So far, virtually every policy of this president has been anti-capital aggregation, anti-savings.
Under Solvency II, cost savings are powerful because they help reduce capital requirements.
应用推荐