Well, actually it is Paul Kedrosky quoting David Rosenberg from Merrill Lynch who is probably out of a job now, but it's on Kedrosky's blog:
[people are going to start paying down debt.] That means that the savings rate is going to be forced higher. This, again, is going to be very, very disinflationary. It means that fashions are going to change. It means frugality is going to set in. We're going to be living in smaller houses, driving smaller cars and living more frugally. It's not going to be the end of the world; it's going to be a necessary process to truly embark on getting the balance sheets down to more comfortable levels so that we can actually embark on the next cycle.Read the entire article on John Mauldin's blog,
where Rosenberg notes the one of the causes:"The natural level of demographic demand for housing in this country is annual demand of 1.45 million units. From 2003 until 2007, builders added on average nearly 2 million residential units per year, or 30% more, than the natural demand could absorb, because, of course, we were in a new paradigm. So the builders were building homes and condos as if we had the same demographics as the 1970s when the Boomers were buying their first refrigerator. This is a case of Global Crossing meeting D.R. Horton, and we are paying the price for that, even today."
More on Green Frugality in TreeHugger:
Fannie, Freddie and the Future of Housing, Innovation and Green Design
Frugal Green Living : Find Your Dinner at the Farmers' Market ...
Frugal Green Living : Save $1000 Using These 6 Tips :
Frugal Green Living : Seven Tips to get Recession Ready r