2006 Personal Savings Drop to 74-Yr. Low

uscitizen

uscitizen

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2006 Personal Savings Drop to 74-Yr. Low

Feb 1, 8:56 AM (ET)

By MARTIN CRUTSINGER


WASHINGTON (AP) - People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago.

The Commerce Department reported Thursday that the savings rate for all of 2006 was a negative 1 percent, meaning that not only did people spend all the money they earned but they also dipped into savings or increased borrowing to finance purchases. The 2006 figure was lower than a negative 0.4 percent in 2005 and was the poorest showing since a negative 1.5 percent savings rate in 1933 during the Great Depression.

http://apnews.myway.com/article/20070201/D8N0V3C00.html
 
"A big enough wave of bankruptcies will whip inflation!"

I think that is what is going to happen and deservedly so. People (in general) seem to be following the politicians line of thinking... just keep buying things or paying for them because you want them.... doesn't matter if you have the money to do so or not.

Everyone has to have the new playstation, flat screen tv, latest "fashion", new car etc... whether or not they can afford it. Idiots deserve to go into bankruptcy and the credit card companies deserve to get reamed for providing such high lines of credit.
 
This is why I keep on gaining cash in the stock market game, and don't just keep rolling everything over.
 
Superfreak said:
"A big enough wave of bankruptcies will whip inflation!"

I think that is what is going to happen and deservedly so. People (in general) seem to be following the politicians line of thinking... just keep buying things or paying for them because you want them.... doesn't matter if you have the money to do so or not.

Everyone has to have the new playstation, flat screen tv, latest "fashion", new car etc... whether or not they can afford it. Idiots deserve to go into bankruptcy and the credit card companies deserve to get reamed for providing such high lines of credit.
Click to expand...

Hmm it seems like I remember pappy Bush telling people to buy things on credit to boost the economy ? Am I mistaken ?

Today most peoples sense of self worth seems to depend on posessions, not who and what THEY are.
 
there are not many bankruptcies at all happening outside of the subprime re area.
Times are great for investors, and apparently consumers are finding plenty of Chineese produced goods at cheap prices to buy.
 
"Hmm it seems like I remember pappy Bush telling people to buy things on credit to boost the economy ? Am I mistaken ?"

I could have SWORN I JUST SAID... too many people are following the leads of the politicians. So yes, Bush is included as are the Reps and Dems in Congress.

"Today most peoples sense of self worth seems to depend on posessions, not who and what THEY are."

I agree, which is not only sad, but pathetic as well.
 
Yep, Super I was just pointing out a specific example.

We seem to be worshipping the god of posessions and finance our worship on credit.
 
the big problem with this fear mongering report is that thehy don't tell you what they measure. if they did, you'd realize that All is not lost. they simply measure earned income versus outgo and say that if you spend more than your earned income your 'savings' rate is negative.

what they don't count is asset value; like your stock protfolio, 401k, retirement accounts or benefits, bond holdings, etc etc etc.

i thnkthat may one or two of you may have an inkilking that a major cause of the housing boom of at the trun of the century was due to people cashing in in their investment portfoios and converting that and cash into real estate. now those valjues have risen to the top and the money is going out of real estate back into the investment markets, ad it is growing at double digit rates.

None of that is counted in that ridiculous negative savings statement. it isn't all about earned incomes vs outgo anymore. a lot of people have lots of different sources of money now days.

and the rate of backrutcies has gone down, not up (mainly due to the new regs, bugt if you take that out, the reuslt would still be flat bankrupcy growth).
 
Home foreclosuers are up by a 3 didit percentage. Methinks you need to think a bit more on this subject....
 
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