Nadine, you are missing the point. The "savings rate" is a measure of current net income less current personal consumption expenditures = saving rate, which is now negative in the US. This is opposed to your thinking of where total accumulated individual savings currently reside, whether in a bank CD, stock market, options contract, etc.
Mike, as well as I, doesn't know exactly all the components which are being aggregated in coming up with current income and expense so there may be some mismatch slop to the result, but it is clear that US savings rates are at historical lows, not to mention the rates compared to other countries such as Japan.
Regards, Ice |
