This week's Outside the Box is comprised of 2 smaller articles that I believe will, collectively, provide you with some interesting information to digest. The 1st article will be a follow up piece to last week's Outside the Box where I featured a commentary by Morgan Stanley's Chief Economist Stephen Roach titled "The Missing Link to Global Rebalancing." Kathleen Camilli, the President of Camilli Economics, has weighed in on some of Roach's views by providing a quasi-rebuttal of her own. While her article "Household Wealth and the US Savings Rate" does not address the structural current account deficit that Roach points out, it does address the low savings rate/Asset Economy issue. You can reach here at www.camillieconomics.com.
And secondly, I quoted some excerpts from Jeremy Grantham's latest letter to investors in my weekly publishing of "Thoughts from the Frontline." Many people have since expressed curiosity about this letter so we've decided to reproduce the whole letter for you to read.
Each article provides some thought-provoking commentary and insight that I believe you will thoroughly enjoy.
John Mauldin, Editor
Outside the Box
Household Wealth and the US Savings Rate
There's so much negative press about the fact that Americans don't know how to save. The official US savings rate reported by the Bureau of Economic Analysis is currently at zero. Pretty dismal, right? Ask anyone from the baby boomer generation, and they'll tell you their parents taught them how to save and invest for a down payment on their first house or for…