The mutual fund industry got a swift dose of the new reality of investors' conservative sentiment recently when
Now economists are debating whether the new frugality will outlast the recession, and the consensus is that it will, at least for the next 10 years.
Its hard to believe were ever going back to the easy credit and free spending of the last 10 years, Richard Berner, an economist with
If mutual fund companies can convince consumers to set some of that money aside for their retirement, of course, that is good news. But currently, many investors have moved their cash to money market funds and bank deposits, and a growing majority of Americans are working assiduously to pare down their debt.
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Many economists note that it will take Americans a while to recover from the $13 trillion loss of wealth since the recession began. And if it gets worse, peoples outlook toward money, saving, retirement and consumer spending will be tamped down further, said Ravi Dhar, director of the center for consumer insights at