According to the US Bureau of Economic Analysis, the personal savings rate is up! Big time, to about $297 billion at an annual rate for the second quarter 2008 (the latest data available)! http://www.bea.gov/national/nipaweb/Nipa-Frb.asp
The consumer should also be feeling the effects of the recent decrease in oil prices. Where I am at, this translates to about $3.00 per gallon, or a 25% decrease. This should help people a lot. However, will it be enough to offset increases in mortgage expenditures due to increased rates, etc.?
There is a negative for this saving at this time; it is not a good thing for the economy. It removes at an annual rate $297 billion. This essentially negates some of the government stimulus. However, longer term, this is a very, very good thing.
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