Jesus Saves

While I was researching other blog posts I came across an interesting post on seekingalpha.com about saving in China.  I thought I would provide it for reference since a lot of people seem to think economics is black magic (which a lot of it is).  I mean economics is the science of saying why your prediction yesterday was wrong.  However this does a good job of explaining why savings and interest rates are correlated in the US and then goes to provide anecdotal evidence of why the reverse is true in China.  Mostly (IMHO) this is due to the larger safety net in the US and the longer history of 'things working out' in general.  China on the other hand is newly free market and so many people still save like crazy to pay for things that the state doesn't provide.