Global Economy

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<b>U.S. ‘Irresponsible’ to Blame Savings for Crisis, Xinhua Says </b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Jan. 8 (Bloomberg) -- The view expressed by some U.S. officials that high savings rates in China and oil exporting nations helped trigger the global financial crisis is “irresponsible and untenable,” China’s official Xinhua News Agency said in a commentary late yesterday.

Advocates say high savings rates have pushed down investment yields in recent years, prompting investors in developed economies to make riskier investments, Xinhua said.

This is “illogical” because high savings rates in emerging markets were not a<b> “reason for developed countries to loosen financial regulation and look on arms folded as financial institutions develop new derivatives and let financial bubbles balloon,”</b> the commentary said.

<b>China’s savings rate is part of a cultural tradition that values the “virtues of diligence and thrift,”</b> Xinhua said. Previous world and regional financial crises have shown that the nation’s savings rate has “no causal relationship with the crisis,” Xinhua added.
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This is very true. Indian and Chinese are very good in saving. Western societies are just reverse.