Maybe the governments have figured how to print their way out of problems.
But almost everyone I know is like the TV commercial where the guy has everything.
But how does he do it?
"I'm in debt up to my eyeballs!" he replies.
Maybe we can all sell our houses to each other and get out of debt?
Or maybe the Sheriff will help us sell it!!!
2006 personal savings drop to 74-yr. low
By MARTIN CRUTSINGER
AP Economics Writer
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.
The Commerce Department reported Thursday that the savings rate for all of 2006 was a negative 1 percent, meaning that not only did people spend all the money they earned but they also dipped into savings or increased borrowing to finance purchases. The 2006 figure was lower than a negative 0.4 percent in 2005 and was the poorest showing since a negative 1.5 percent savings rate in 1933 during the Great Depression.
The savings rate has been negative for an entire year only four times in history - in 2005 and 2006 and in 1933 and 1932. However, the reasons for the decline in the savings rate were vastly different during the two periods.
During the Great Depression when one-fourth of the labor force was without a job, people dipped into savings in an effort to meet the basic necessities of shelter and clothing.
Whatever the reason for the low savings, economists warn that it the phenomenon exists at a particularly bad time with 78 million baby boomers approaching retirement age. Instead of building up savings to use during retirement, baby boomers are continuing to spend all their earnings.
Edited by Rogerdodger, 01 February 2007 - 11:08 AM.