Posted by Emmanuel |
Wednesday, August 03, 2005
How About the 0.0% Savings Rate?
Personal income and personal saving were up 0.5% and 0.8% respectively in June. That was promptly reported by Bloomberg. However, the big news--the downer that never seems to get reported--is that the US personal savings rate fell to 0.0%. Nada, zip, zilch. That this bit escapes mention is inexcusable. Households bereft of savings will be hard hit by economic shocks that are readily conceivable--terror attacks stateside, oil at $80 a barrel or more, foreigners stop funding the gaping current account deficit, etc. Already, the forthcoming retirement of the baby-boom generation threatens to further decimate marginal savings. Message to Bloomberg: More air time for disappearing savings, please.