2006 Personal Savings Drop to 74-Yr. Low
By MARTIN CRUTSINGER
AP Economics Writer
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WASHINGTON (AP) — People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago.
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Now we know that the FED (The Federal Reserve Bank which is neither Federal, a Reserve, or a Bank) tells us there is no inflation. We know the politicians tells us there is no inflation. And, we know that we are not in the Jimmy Carter era of runaway 18% inflation.
But, could one explanation for the negative savings rate be that there is an underlying belief that cash is crap?
Why save if tomorrow will be worse than today in buying power?
Could we be seeing the marketplace discounting for an expected future inflation?
In a variation of the “Customer is always right”, the marketplace is always right.
If people are not saving, whatever the reason, they are “right”. Even when they are wrong, they’re “right”.
The cost of the war, the cost of social security, the cost of medicare, the cost of the drug benefit, the cost of all the social programs, and the cost of the TSA’s security kabuki dance is all going to come due.
Hmmm?
Reinke Faces Life 