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Below, we have overlaid the Case Shiller Home Price Index with the US Personal Savings Rate. As I have said many times before, we are aware of the imperfections of the savings rate calculation, but that's not the point. The point is always what happens on the margin. Rates of change is what I care about.

The US Personal Savings Rate went to 12% in the 1970's. Going from zero to half way there will be the first move, but all of the facts concerning access/cost of capital tell me we could quite conceivably see double digits again.

KM