Household Savings Rate at 0%
August 4th, 2005
http://money.cnn.com/2005/08/02/news/economy/savings/index.htm?cnn=yes.
CNN reported yesterday that the household savings rate, a measure of
the percentage of their income that American households put away into
savings, has dropped to zero percent. While consumer spending is
continuing at a record pace, the analysts quoted claim that this is
simply a sign of problems ahead with the economy, as assets run out and
consumers have to slow their spending. The article blames, in
part, rising energy costs for the trend.