Nov
28

Sickly Savings

 The personal savings rate fell to just 3.1% in September, its lowest level since 12/07, the start of the Great Recession. The decline is undoubtedly being caused by record gains in household net worth. As a percent of disposable income, it’s 670%, well above the Housing Boom high of 650%. Ever higher bond, equity, housing, and real estate prices are feeding wealth. Should they weaken, growth will, at best, stall.

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  1. Eric Bultez says:

    Hi Elliot – what is your opinion on “prize-linked savings accounts” to help increase savings? I like the idea – I recently listened to a podcast on Freakonomics Radio (Nov. 22nd) that peaked my interest.

    Thanks!

    • Elliot says:

      A great idea! Anything that can get folks to save more is a good thing. I love this idea! You are spot on Eric!

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