Quote:
Originally Posted by Nancy
In the category of "is it good news or is it bad news" is a sharp turnaround in the savings rate in the U.S.. From being negative for most of recent years, it has risen to 5%. Bad news in that it means reduced consumer spending, good news in that it means that people are getting their personal finances in order, which is good over the longer term.
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70% of their economy depends on consumer spending. Right now it is like the consumer is hung over and the government is trying to think of ways to get them to go out and party again. It is fun for awhile but it is not sustainable.
http://www.bea.gov/briefrm/saving.htm = The consumer has found AA.