US Savings Rate Surges to 6.9%; Spending Up Too But Government Assisted

By Trader Mark
26 June 2009 @ 11:56 am EDT

Our long held prediction of the American savings rate being forced upward not out of choice but necessity is happening much faster than even I anticipated. There are many flaws with how savings are measured, however, these flaws have not changed over the past few years so its apples to apples to compare savings rate "today" versus "3 years ago". In December I penned ( ok , I typed) a piece [ Dec 29, 2008: What Happens if America Returns to a Historical Savings Rate? ] - I had written in many pieces in 2007 and 2008 that Americans would be forced into savings but I wanted to see the actual numbers and compare them to other countries as well as to the US itself in previous periods.

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