Steadfast FinancesNational Savings Rate: 30 Year Spending Binge Now Replaced by Saving Spree

30 Year Spending Binge Now Replaced by Saving Spree

Filed in Economy , Frugal Living , Infographics & Chartology , Saving Money 2 comments

It would appear that an increased savings rate, and the debatable longevity of the “new frugality” meme, are more sticky, time wise, with American consumers than many business leaders and economists had hoped.

Not surprisingly, negatively toned headlines like one in seven Americans living in poverty and much of the financial mainstream media constantly discussing probabilities of a double dip recession aren’t helping consumers feel confident enough to spend during the Great Unwind.

Or, just maybe, 30 years of borrow and spend have taken their toll on the American psyche and we’re simply going to revert to a new meme of pragmatic consumption and conscious consumerism, rather than buying any little piece of junk with borrowed money.

Image Source & Credit
Dr. Gary Schilling
Posted at Barry Rithotlz’s Big Picture Blog
Chances of a Double Dip

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Posted by CJ   @   18 September 2010 2 comments
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2 Comments

Comments
Sep 20, 2010
8:13 am

Sadly, much of what is happening is that people have simply stopped paying their mortgages and they’re paying down credit card debt instead. It’s just too easy to walk away these days and if you’re in the hole 200K on a mortgage vs. 40K on credit cards, the calculation is dump the mortgage, pay off CC debt and go rent.

Sep 20, 2010
11:11 pm
#2 Matt SF :

Yeah, I’ve seen those reports over the weekend too. But by the “Great Unwind” not only suggests that consumers are deleveraging (which many aren’t), but they’re also unwinding past behaviors as mindless consumption to mindful consumption.

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