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Thrift Helped Get Us Into This Mess

"Wealth effect" is playing out in reverse

By Sarah Quinn, Newser Staff

Posted Nov 25, 2008 10:09 AM CST

(Newser) – Three factors are playing into the financial crisis, and it's time to recognize the culprit that accompanies the burst housing bubble and banking meltdown, Robert J. Samuelson writes in the Washington Post. The wealth effect—"the tendency of people to adjust their spending... Read full story »

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Thrift Helped Get Us Into This Mess

"Wealth effect" is playing out in reverse

Wall Street • consumer spending • housing bubble • economy • investment banks • financial crisis • wealth effect

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More Newser Stories

Big Banks Still Think We're Chumps

Citigroup hasn't learned its lesson from financial crisis

Lousy Retail Sales Will Delay Recovery

Recession isn't over as far as consumers are concerned

Be Very Afraid: Goldman Sachs Is Smiling

High-risk model hasn't changed, could lead to new crisis, says Reich

Fed Keeps Interest Rates at Record Low

Economy picking up, but not enough that inflation is a worry

Economy Shrinks Faster Than Expected in 1st Quarter

6.1% pace fueled by biz cutbacks, export drop

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