JULY 2005

Do We Have a Saving Crisis?

Theoretically, the decline in saving jeopardizes our economy because savings are lent to businesses for investment. In reality, the U.S. economy is doing better than the economies of countries where saving is much higher. Can this continue?

Cash-Out Option Can Be Tricky

Lower interest rates can make mortgage refinancing a good idea, but borrowers need to pay attention to more than just the monthly payment. Cash-out refinancing is especially tricky because it entails taking on a larger mortgage. This can lead to a greater repayment burden in the future.

The Economics of Smoking Bans

Although such prohibitions are becoming more common, generalizations can’t be made about their impact because they still are too new and too few. Scrutiny of the ban in Maryville, Mo., shows that the issues remain hazy.