US savings rate sinks to lowest since Great Depression
Date: Tuesday, January 31 @ 10:43:26 PST
Topic: Business News; Market Research
Americans spent $42bn (£24bn) more than they earned last year, turning the annual US savings ratio negative for the first time since the Great Depression.
The offical figures published yesterday, a day ahead of the retirement of the chairman of Federal Reserve Alan Greenspan, will be seen as a telling verdict on his 18 year reign at the US central bank.
The savings ratio is seen as a key economic indicator as it shows how vulnerable households are to a sudden shock such as a surge in interest rates or unexpected redundancy.
The Independent
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