[AuntB]

Few want to admit this ominous fact.

"The problem is clear: This isn't a nation of savers. In the past two years, America's personal savings rate reached its lowest level since the Great Depression. And in comparison to other industrialized countries, the United States ranked second to last in personal savings."

http://online.wsj.com/article/SB118964627975525938.html?mod=googlenews_wsj

Salt Lake Tribune, United States - Sep 2, 2007 Americans have coped with their declining pay by going deeper in debt: The personal savings rate has been at the lowest level since the Great Depression. ...

Inland Valley Daily Bulletin, CA - Sep 12, 2007 Add to that the fact that the US has had a negative savings rate recently for the first time since the Great Depression, and it's ominous. ...

[2ndDivisionVet]

Who would be pushing for a recession right before an election? Hmmmmmm....

[AnnaZ]

Good grief. This "journalist" writes like she's cracking open the champagne.

[edcoil]

Seattle Times, a bastion of liberal thinking if there ever was.

The economy is made up of Americans, we can make it grow or shriknas we want. Be positive in yourself and what you do. Work hard, do your best and the economy will grow.

[xcamel]

It's more like a self-fufilling-procephy. This economy is not going in the tank. Period. The Clinton economic disaster was based on blue sky and thin air, this one is grounded in a far greater percentage of real assets.

These stories are only about how the dimwits need a depression/disaster to win in 08. Nothing more, nothing less.

[Jacquerie]

This isn't a nation of savers.

Quite true and to our national detriment. The reason is our government taxes savers and subsidizes debtors. As long as that is the case I think we'll have the problem for a long time.

[Grimmy]

I’m a bit confused.

Does this mean the sky is falling? or is this a general doomination type world ending event?

Should I buy a new umbrella?

[generally]

And why do you suppose Americans are not savers? Could it be because they have been indoctrinated to believe that “the government” would take care of them? Social Security? Medicare? etc, etc.

Too many Americans have been sucked into the idea that they are somehow “entitled” to be taken care of by the government. When asked who is going to pay for it, they say “the government” as if that money didn’t have to come out of someone else’s pocket somewhere. I have heard this idea expressed by someone earning over $150,000/yr. He thought he could spend every penny and then some and thought that the government would take care of him in old age. When asked where the government would get the money, he said “from the rich people” as if he were destitute on $150,000/yr.

[Nomorjer Kinov]

And the discussion has begun on what kind of baloney economy kept them lubricated for so long.......

Sure enough it hasn't been a dot-com boom.

[BunnySlippers]

Have you factored in 401Ks and IRAs, etc? For most Americans those savings are quite substantial.

Or are you talking about an old fashioned “savings” account with a 1% rate?

Most Americans have some sort of mutual fund activity.

[Caipirabob]

Well, the solution is clear. To save more money, we need more tax cuts. Democrats in the House and Senate? We're waiting for the right action here.

*Crickets chirping*

*Lone wolf howls in the distance*

*silence*

[LibLieSlayer]

Rush mentioned the latest stats show a rebound... commies... day late and dollar short.

LLS

[fight_truth_decay]

but consumers had better act fast — like five years ago

Many Americans have saved, and much longer than 5 years. Plus, have set up education savings accounts for children and/or grand children. If a person at 25 saved ,for example, $500 MOL a month in a good mutual fund which has a track record return around 12%, by the time they were "into" retirement age they would be multi multi millionaires.

We have to think of the future and just not for today. Education is certainly important studies prepare for the skills needed in the "real world". Many can have a Masters, but what use is it if it not a realistic job skill. We have become a nation of wants and over needs. We have a choice. We need to take responsibility for our own actions.
A retired hotelier and his wife barricaded the Cheltenham branch manager in her office after being told that they could not withdraw £1 million savings without notice. The situation was resolved only when police officers arrived to calm the couple down. “Everyone should calm down and refrain from making simplistic comments in a very complex area which just causes unnecessary worry and concern.

This great depression mindset stems from the run on a major bank in England, the other day. They blamed interest rates in America and a threat of recession. We should see a drop in interest rates this coming week is the rumor. But even that cannot help if Americans cannot handle their own financials. Wouldn't it be beneficial to all, if kids were taught useful economic and financial classes on how to handle money when in high school. This important part of a child's education is sadly often not taught at home, because parents have, themselves, not learned how to save.

My Opinion.

[dragnet2]

We’re to the point where we are only purchasing necessities...Nothing extra unless it’s absolutely needed.

Incomes are stagnant....We just deal with it.

[uncbob]

Credit Card (Instant gratification ) driven economy had to end sometime

[AuntB]

Interesting:

“With more people working long hours, the average median income per household increased. But in order for most households to achieve this, both husband and wife had to work full-time. What’s worse, individual incomes decreased. Women’s earnings dropped 1.2 percent, with the median income at $32,500. Even though men typically make more, they too saw a decrease in earnings.

Robert Greenstein from the Center of Budget and Policy Control commented, “Working Americans in general are kind of treading water, they’re not really making that much progress.”

But those in the workforce making a lot of progress are CEOs. One survey shows they make 364 times more than average workers. Greenstein says these recent numbers show an uneven distribution of economic growth.

“Millions of middle and lower income working families have not gained and have not shared in the benefits of this economic recovery,” he said.

http://news14.com/content/business/586760/census—more-americans-working-full-time/Default.aspx

[Lancey Howard]

The sky is falling.
(yawn)

[RightWhale]

Don’t worry about consumers. Commerce will find ways to keep the merchandise moving.

[syriacus]

When does the Democrats’ new minimum wage go into effect?

[Continental Soldier]

“The Party’s Over for American Consumers”

Party? Was there a party? I didn’t know there was a party.

[Larry Lucido]

So is the problem that folks aren’t consuming enough? Or not saving enough? The article complains about lack of consumption. You warn about not enough savings. It has to be one or the other. Can’t be both. Like complaining about global warming and global cooling at the same time.

Wait, folks already to that.