Friday, February 02, 2007

Savings? What Savings?

John Amato over at Crooks & Liars asks the question, "Why aren’t people saving money?", if this economy is perking along so well.

Here are the stats:

…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.


So, look at that last number (-)1.5 % savings rate during the Great Depression.
............................................(-)1.0 % savings rate today.

...and I personally have been blessed to be able to save at a rate of 1/4 of my paycheck, so someone else is overspending by -26% to match me.

If that's not the best argument(after Iraq) for impeaching this lying, incompetent president, I don't know what is.

3 Comments:

Blogger The Fat Lady Sings said...

Honey - we have some going into the 401K - but our all-around savings is very little. What's a real bitch is we don't live high off the hog either. It's just really hard to get ahead in this ecconomy.

1:49 AM, February 03, 2007  
Anonymous oldwhitelady said...

Trying to pay off some large debt has kept me from putting away. Yes, I realize I should be paying myself, too, but I haven't.

10:44 PM, February 03, 2007  
Blogger SB Gypsy said...

Hey TFLS,

We're not living high off the hog, but we're comfortable. I don't make very much, so 1/4 of my income is not that much either. Unless you've got a whole portfolio of blue chips, you're loosing in this economy.

Hey OWL,

If you have debt, with the price of interest, you ARE paying yourself if you are knocking it down.. and you are doing much better than the bulk of us, most are desperately going deeper and deeper. Keep up the good work, I know how hard it is these days!

8:35 AM, February 06, 2007  

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