2006 Personal Savings Drop to 74 year Low!

People once again spent everything they made and then some last year,

pushing the personal savings rate to the lowest since the Great Depression.

The commerce department reported Thursday, 2/1/07 that the savings rate

for all 2006 was a negative 1 percent.

During the Great Depression people were dipping in their savings to survive.

Today people are using equity in their homes and stock portfolios

to maintain their lifestyles.

These are only some of the explanations used. However, whatever the

reason for the low savings rate, economist warned this Phenomenon is

happening at a bad time when 78 million Baby Boomers will be retiring

in the next few years.

They are not saving for retirement, they are spending all their earnings!

Associated Press 2007

Yesterday I watched our President shake hands with traders at the

NY stock exchange and boasted about our great economy.

Well who's benefiting certainly not all of us!