Something to think about. According to the Federal Reserve, as of May 10 money in bank and money market accounts has increased to about $9.36 trillion. In May, 2007 this amount was $7.44 trillion!
American's aren't broke, but they are fearful. A substantial part of this money was pulled from the stock market. Take that, Goldman Sachs! People may be fearful, but they aren't stupid.
To give you an idea of how much moolah this is, consider that all of the employer sponsored retirement plans in the U.S. currently total "only" about $2.7 trillion.
Showing posts with label Cash Hoard. Show all posts
Showing posts with label Cash Hoard. Show all posts
Friday, May 28, 2010
Sunday, October 11, 2009
How Much "Cash" is Out There?
There have been a number of reports that Americans are saving more. Most recently, the U.S Department of Commers Beureau of Economic Analysis (BEA) had this to say in its Sept. 30, 2009 report.
Personal saving -- DPI less personal outlays -- was $324.1 billion in August, compared with $436.0 billion in July. Personal saving as a percentage of disposable personal income was 3.0 percent in August, compared with 4.0 percent in July.
Ref:
http://www.bea.gov/national/nipaweb/Nipa-Frb.asp
The "bottom line"; Americans have been saving for all of 2009. A real turn around, as the personal savings rate was actually near or at zero earlier in this decade.
I also saw this in a Morningstar article. Something to think about:
"Bloomberg recently referenced data from ICI detailing money market accounts flush with a whopping $3.5 trillion. This elevated historical number comes despite a $439.5 million drop from the record highs experienced in January of this year.
From a broader perspective, if you include cash, money-market, and bank deposits, the nation's cash hoard reached $9.55 trillion in September." (The bold text is mine).
Link to the Morningstar article:
http://news.morningstar.com/articlenet/article.aspx?postId=2714714
Link to the Bloomberg article:
http://news.morningstar.com/articlenet/article.aspx?postId=271471
Personal saving -- DPI less personal outlays -- was $324.1 billion in August, compared with $436.0 billion in July. Personal saving as a percentage of disposable personal income was 3.0 percent in August, compared with 4.0 percent in July.
Ref:
http://www.bea.gov/national/nipaweb/Nipa-Frb.asp
The "bottom line"; Americans have been saving for all of 2009. A real turn around, as the personal savings rate was actually near or at zero earlier in this decade.
I also saw this in a Morningstar article. Something to think about:
"Bloomberg recently referenced data from ICI detailing money market accounts flush with a whopping $3.5 trillion. This elevated historical number comes despite a $439.5 million drop from the record highs experienced in January of this year.
From a broader perspective, if you include cash, money-market, and bank deposits, the nation's cash hoard reached $9.55 trillion in September." (The bold text is mine).
Link to the Morningstar article:
http://news.morningstar.com/articlenet/article.aspx?postId=2714714
Link to the Bloomberg article:
http://news.morningstar.com/articlenet/article.aspx?postId=271471
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