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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: RealMuLan who wrote (34946)6/13/2003 1:36:04 AM
From: energyplay  Read Replies (1) of 74559
 
The calculation of personal saving is done by taking an approximation of income and subtracting a proximation of expenses. An error prone proceedure at a minimum.

The income approximations DO NOT count capital gains - so some one who made 80k a year in salary, 20 k in capital gains, and spent 76k gets counted as saving 4k, or a 5% rate.

Capital gains have been an increasing part of compensation for years.

So when you see that very low savings rate for the US - remeber it may not match reality...
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