The air is slowly going out of the Denver housing market. Fortunately, we didn’t experience the kinds of runaway growth rates such as in Phoenix and on the coasts, but the market here is still not good for homeowners who banked on significant appreciation.
Foreclosures are high, and a major reason is that people have simply run out of money and can’t keep going deeper into debt. Yet, economists continue to tell us that this is what people should do. This story mentions the fact that the “personal savings rate in the country turned negative for the first time since the Great Depression,” but a local economist maintains that “should consumers start saving at historical rates again, it would effectively wipe out economic growth.”
In other words, even if you’re broke and you foreclose on your home, don’t even think about saving money. That would wipe out economic growth. A savings-based economy is inconceivable to these people.