Mish is the only, as far as I know, Austrian-informed economist who keeps his definition on money accurate and therefore understands how ersatz credit is wreaking havoc on the economy....
None of the above remotely has anything to do with a "savings glut". There was no "savings glut" in 1933 and there sure isn't one today.I recommend the whole article. Feel free to forward this by email to three of your friends.
Ironically, it was the explosion of debt, not the lack of savings that fueled the Great Depression and the Global Financial crisis. Margin debt and speculation soared in the late 1920s and is at an all-time high again now.
Only by confusing the expansion of credit and money printed out of thin air with savings, can one propose a "savings glut" thesis.
Realistically, debt does not equal savings and credit is not the same as money. To suggest, as Pettis does, that "excess thrift is a much more serious problem than insufficient thrift" is ridiculous.
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