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Too much of a good thing?

September 12, 2009

Re "Drop in debt may hamper recovery," Sept. 9

I seem to remember Wall Street pundits not so very long ago wringing their hands in dismay at the tremendous amount of debt and the pathetically low savings rate of the American public.

And now I read how awful it is that we are paying down our debt, not taking on any more debt and increasing our savings rate.

Now, which is it, guys?

Carol Marshall

Anaheim

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A gaping hole exists in this report on the negative impact that sluggish consumer spending is having on the rate of economic recovery. The real reason that consumers aren't spending money on big-ticket items is that banks won't loan money.

My husband and I are both mid-career physicians with stable jobs and excellent credit ratings. We have little debt. We had a remarkably difficult time getting a loan for a major home remodel.

If banks won't loan money to us, who will they loan it to?

M. Victoria Marx

South Pasadena

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Yet another economic oxymoron: We need to get deeper in debt to aid the nation's recovery. We're beginning to act too responsibly -- actually buying only what we can pay for. How un-American of us.

When will the economists realize that individual consumers may act as a better gauge of recessionary movement than one of their cronies simply announcing that "the recession is over today"?

Connie Veldkamp

San Clemente

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