Thursday, March 19, 2009

In Defense of Savings: Credit Card Cancer by Peter Schiff

Peter Schiff has written an article on the subject of savings and credit which expresses similar sentiments to what I have been posting over the past few months, so I thought I'd link it here. He simply makes the point that, contrary to what the economists our politicians are currently listening to seem to say, credit is not the bedrock of a healthy economy; savings is. Without savings, credit cannot be extended. What this means is that if one is relying upon an open line of credit (a credit card) as one's supply of emergency funds, those emergency funds will not be available when one needs it most: during a recession. Savings, however, would be, and can continue to serve as the base for the extension of credit.

I'll have been on a train for three days by the time I would normally post, so that's all I've got for this week.

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