Dean Cain Posted March 26, 2013 Share Posted March 26, 2013 http://research.stlouisfed.org/fred2/data/PSAVERT.txt Further proof Americans are dumber than we give them credit. Link to comment Share on other sites More sharing options...
TakeYouToTasker Posted March 26, 2013 Share Posted March 26, 2013 Another side effect of inflation. Link to comment Share on other sites More sharing options...
Dean Cain Posted March 26, 2013 Author Share Posted March 26, 2013 Another side effect of inflation. Actually I'd make the argument it's private sector debt deleveraging as households pay off debt or default. But largely our country baby boomers in general strayed from their parents fiscal conservatism adopted during the Great Recession. If tomorrow will always be bigger, greater why save? Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted March 26, 2013 Share Posted March 26, 2013 Another side effect of inflation. Did you check out the numbers from the 1970's? Link to comment Share on other sites More sharing options...
Dean Cain Posted March 26, 2013 Author Share Posted March 26, 2013 Did you check out the numbers from the 1970's? When govt bonds & corporate bond prices are high you see people run into these investments. Right now the Fed has artificially kept rates lower to help the Wall Street banks wind down their toxic assets. The net effect is more money is being invested in the stock market and borrowed to invest. Margin debt is 70% meaning a new bubble has been created in the stock market. Expect a hard decline within the next 24 months. Link to comment Share on other sites More sharing options...
TPS Posted March 26, 2013 Share Posted March 26, 2013 http://research.stlouisfed.org/fred2/data/PSAVERT.txt Further proof Americans are dumber than we give them credit. Rather than suggest a reason for the long term decline in the US personal savings rate, you suggest stupidity? The long term decline is a consequence of stagnant real wages (mainly caused by globalization) and households use of debt to maintain living standards. There might be some justification for "stupidity" in the 2000s, as Americans cashed in (home equity loans) on the increase in their most valuable asset (housing) to consume more things. The most recent data show the deleveraging process has led to an increase in the savings rate during the great slow down. The last few months could indicate that deleveraging is done, and consumers are ready to drive the economic recovery. Link to comment Share on other sites More sharing options...
Joe Miner Posted March 26, 2013 Share Posted March 26, 2013 Another side effect of inflation. I'd suggest it's also a side effect of low interest rates. The piggy bank on your dresser earns you as much as a savings account. Americans might be willing to make an affordable investment if there were any decent returns to be had in a savings account or CD. Americans aren't nearly as likely to squirrel away money for the sake of having a pot of money. Link to comment Share on other sites More sharing options...
dayman Posted March 26, 2013 Share Posted March 26, 2013 I don't know how many times i have to say this on this board but here it goes again...ahem..."savings is for asian countries"...thank you Link to comment Share on other sites More sharing options...
KD in CA Posted March 26, 2013 Share Posted March 26, 2013 The long term decline is a consequence of stagnant real wages (mainly caused by globalization) and households use of debt to maintain increase living standards. In this sentence you hit on one of several reasons and ignore/excuse another big one. People today blow money on all kinds of luxuries our parents would never have wasted money on. Blame Madison Avenue for it if you want, but the rise of consumerism is a big factor in lack of personal savings. Link to comment Share on other sites More sharing options...
Chef Jim Posted March 26, 2013 Share Posted March 26, 2013 Rather than suggest a reason for the long term decline in the US personal savings rate, you suggest stupidity? Yes, stupidity has a lot to do with it. Didn't know where to put this but this is the best place as any. What I deal with on a regular basis. http://www.youtube.com/watch?v=iacqPzW0ukM Link to comment Share on other sites More sharing options...
meazza Posted March 26, 2013 Share Posted March 26, 2013 Yes, stupidity has a lot to do with it. Didn't know where to put this but this is the best place as any. What I deal with on a regular basis. http://www.youtube.com/watch?v=iacqPzW0ukM "Can you help me open a CD for my daughter?" :lol: Link to comment Share on other sites More sharing options...
DC Tom Posted March 26, 2013 Share Posted March 26, 2013 That's much better than I expected - no negative numbers. Link to comment Share on other sites More sharing options...
Chef Jim Posted March 26, 2013 Share Posted March 26, 2013 That's much better than I expected - no negative numbers. Well that's what I was wondering. From what I remember wasn't it negative a few years back? "Can you help me open a CD for my daughter?" :lol: "Get the !@#$ out of my office!" Link to comment Share on other sites More sharing options...
boyst Posted March 26, 2013 Share Posted March 26, 2013 "Get the !@#$ out of my office!" that whole thing made my day. I played it for a coworker thinking they'd laugh too. They were just confused. Link to comment Share on other sites More sharing options...
DC Tom Posted March 26, 2013 Share Posted March 26, 2013 Yes, stupidity has a lot to do with it. Didn't know where to put this but this is the best place as any. What I deal with on a regular basis. http://www.youtube.com/watch?v=iacqPzW0ukM "Why do you charge us a penalty?" "I need a new car. I will use the money in my IRA." Link to comment Share on other sites More sharing options...
Chef Jim Posted March 26, 2013 Share Posted March 26, 2013 "Why do you charge us a penalty?" "I need a new car. I will use the money in my IRA." It's not funny!! It's not funny!!! :wallbash: Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted March 26, 2013 Share Posted March 26, 2013 (edited) Yes, stupidity has a lot to do with it. Didn't know where to put this but this is the best place as any. What I deal with on a regular basis. http://www.youtube.com/watch?v=iacqPzW0ukM Yeah that is insanely stupid. Not justifying failing to plan and unGodly expectations, but most people like that are past the Rubicon. Gotta 'em hook when they are young. Mind as well not trust anybody @ that point. There are too many scammers & pyramid schemes out there that feed on our idiot culture. You are right, get the !@#$ out of my office and take the other 50 million idiots with you! Take your 100,000 plus 10,000 bucks & continue to save while working to she is 75 or forever (which is probably the case). Forget about retiring @ 50... LoL... Where the heck did that expectation of retiring @ 50 come from? I always hear 55 as being insanely young. Tell the snot, brilliant little children to go get a job... Thank Disney World 2000, 2002, and 2004... They can look @ the photos ONLINE if they want to know where the money went. Edited March 26, 2013 by ExiledInIllinois Link to comment Share on other sites More sharing options...
Joe Miner Posted March 26, 2013 Share Posted March 26, 2013 "Why do you charge us a penalty?" "I need a new car. I will use the money in my IRA." It's not funny!! It's not funny!!! :wallbash: I don't like to pay penalties. Link to comment Share on other sites More sharing options...
KD in CA Posted March 26, 2013 Share Posted March 26, 2013 It's not funny!! It's not funny!!! :wallbash: I want to buy gold!! Link to comment Share on other sites More sharing options...
Chef Jim Posted March 26, 2013 Share Posted March 26, 2013 I want to buy gold!! Suzie Orman, Suzie, Orman, Suzie Orman. Link to comment Share on other sites More sharing options...
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