Economists Just Don’t Know

The Bank of Japan raised interest rates. Half the economists say that its because the BOJ expects Japan's economy to grow.

The other half of the economists say, Japanese are more likely to hoard their money thus reducing consumer spending and hurting the economy.

Another half of the economists say that the Japanese will see their savings increase and thus feel like spending more money.

Yet, another half of the economists say that the Japanese will stop investing in stocks and companies because they can make more saving in the bank.

I know that's too many halves and does not add up to one.

But, economists cannot add either.

The bottom line…economists do NOT know how/if/when people spend their money or why.

It's a mystery.

When do you loosen your purse strings?

That is when Japanese will do the same.