Too much money is being saved
By TUX TURKEL, Staff Writer
January 25, 2009
KENNEBUNK — A few weeks ago, Kennebunk Savings Bank lent $45 million in idle funds overnight to the Federal Home Loan Bank of Boston, which advances credit to New England financial institutions. Kennebunk Savings earned a half-percent or so on the transaction.
Not unexpectedly, folks are saving more by spending less. As the baby boomers retire towards fixed incomes, the age of conspicious & irrationally exuberant consumption may be coming to an end. In other words, we do have enough stuff, no need for futher trinkets, time to become and remain frugal Yankees.
The darkside remains as we adjust to this new economy. Declining interest income comes immediately to mind. Not to mention, possible branch closures as banks contract to the revised market place. Many folks can go weeks, to months, to even a year between actually walking into a bank. The financial service economy, while necessary, is not an end all, be all, solution.
For Maine to come out of these depressionary times in better shapes, we need jobs in production. Jobs that make something, not jobs that just do something.
Until then, too much savings is going to remain a good thing.