Reaching the Rubicon
Some said it couldn't be done. But we're Americans. "Can't" isn't in our vocabulary.
So we did it. In June 2005 the US personal savings rate officially hit 0.0%. Personal savings recorded were a barely measurable $1.9bn at annualized rates -- or around $160 million for the month.
Over the last year, disposable personal income is up 5.3% while personal consumption expenditures are up 6.7%. And this trend has been going on for years. In June 2004 we were saving around 1.5% of our income. Last month it dissipated like the morning fog into nothingness.