It is very difficult to have much hope about the economy with all that is going on. At the church office we see people every day who have lost jobs, are loosing their homes and are in real need of help. It’s hard to watch the news or if you have one to look at your portfolio or not begin to draw comparisons to the Great Depression of the 1930’s. But underneath all the stuff that’s been coming out here is one good note.
The Bureau of Economic Analysis reports consumers saved an annualized $297 billion in the second quarter -- more than 10 times higher than the first quarter, and the highest quarterly savings since 1995. From 2004 through 2007, the average rate was around $85 billion. In the third quarter of 2005, things got really out of hand, with a negative savings rate … meaning that as a collective body, living paycheck-to-paycheck meant you were ahead of the pack.
Maybe there is a silver lining in this very dark cloud.
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