All Posts Tagged With: "economy"

Americans are not saving money. Our national personal savings rate has been less than 1% since 2005, when our savings rate was actually negative; its lowest point since the Great Depression. If we are not saving, then we must be spending more than we ever have. But why?

In his new book, Going Broke: Why Americans Can’t Hold On To Their Money, Connecticut College Professor of Psychology Stuart Vyse explains our unstoppable spending. Continued

With the economy faltering, more Americans are paring down their spending. At the least, Americans are starting to buy only what they can afford. Could the next few years become the age of Americans saying good bye to credit cards and living within our means? And if so, is life without consumer credit a fiscal utopia?

Consumer credit is like a passionate romance that sizzles, and then fizzles. Consumers are lured to the relationship with large credit lines and promises of being able to “afford” life’s luxuries, today. For a while, life is grand. Borrowers have no need for a budget, as minimum payments are low and credit lines are always available for unexpected expenses or if ends don’t meet, as they inevitably won’t. Consumers are enamored with their credit, and creditors love their consumers, unwittingly racking up balances that will make creditors a fortune.

Sooner or later, the honeymoon ends. Borrowers max out their credit lines and minimum payments are not so minimal anymore. Life gets tough, and consumers begin to resent the credit they so recently embraced. Continued

Congress’ economic stimulus package bill has passed, meaning most American taxpayers will receive tax rebate checks ranging from between $300 and $1,200 per household, plus additional amounts for households with multiple children. Want to make sure you get yours? Continued

The markets are seesawing, the big banks are panicking, and W. is throwing U.S. taxpayers a $300 - $1,200 bone. At my age (27 as of next week), I couldn’t be happier. Continued