"I think America's gone frugal. Just like our parents, or grandparents, or even great-grandparents changed their patterns of behavior somewhat radically after the Great Depression, I'm thinking we've changed ours, too."
Here's a newsflash for you Jim: America went frugal already more than five years ago. Why do you think things are the way they are?
See Mish's "The Age of Frugality" here, from October 19, 2008, which noted that frugality had finally (!) made the cover of a magazine after he'd been talking about it since at least March:
"Frugality has finally made front page. BusinessWeek is commenting on The New Age of Frugality."
Cramer thinks there's a new opportunity in the "new" frugality. Remember, this is coming from the same guy who told you in October 2008 to get out of the market if you needed your money in the next five years. If you took his advice, you missed one of the most incredible bull markets in the history of investing. Unfortunately, being five years behind Jim doesn't realize we've already reaped the opportunity of the new frugality.
The future?
I'm still with Chris Whalen and Ambrose Evans-Pritchard: DECADES of economic shrinkage ahead. We've already enjoyed the prosperity which the debt we racked up provided. Civilizationally speaking: It's time to pay for all that.
Sorry old boy.
Unnumber'd Maladies each Joint invade,
Lay Siege to Life and press the dire Blockade;
But unextinguish'd Av'rice still remains,
And dreaded Losses aggravate his Pains;
He turns, with anxious Heart and cripled Hands,
His Bonds of Debt, and Mortgages of Lands;
Or views his Coffers with suspicious Eyes,
Unlocks his Gold, and counts it till he dies.
-- Samuel Johnson, 1749
