WC>Afghanistan War is 'Cuckoo,' Says Blair's Favorite General

WC>Martin Crutsinger / AP | February 1, 2007

WC>WASHINGTON - People once again spent everything they made and then
WC>some last year, pushing the personal savings rate to the lowest level
WC>since the Great Depression more than seven decades ago.

WC>The Commerce Department reported Thursday that the savings rate for
WC>all of 2006 was a negative 1 percent, meaning that not only did
WC>people spend all the money they earned but they also dipped into
WC>savings or increased borrowing to finance purchases. The 2006 figure
WC>was lower than a negative 0.4 percent in 2005 and was the poorest
WC>showing since a negative 1.5 percent savings rate in 1933 during the
WC>Great Depression.

The savings rate statistic is a terrible measure of personal wealth.  It 
is only based upon passbook savings and CD types of accounts.  Most 
people would be smarter than putting their money there when other 
investments are doing better.   I hope people pulled money out of 
savings accounts and invested in the markets.  On the other hand 
personal wealth of US households is at an all time high.   You didn't 
know that.  You know nothing about economics.


Jeff


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