news

hahah..i read the TODAY newspaper and it sae the saving rate for american was negative 0.4 and the economics was bothered by it...they sae "It's surprising, especially in a period with the economy growing so
strongly," said American University economics professor Martha Starr, who
specialises in savings and consumption issues. The US economy grew by a
robust 3.4 per cent last year - consumer spending accounts for about
two-thirds of US economic output - and the unemployment rate ended the
year at 4.6 per cent.
"That, I think, is what may be really shocking. We would think that with
the unemployment rate so low and the economy growing so vigorously that
there wouldn't necessarily be any reason for the saving rate to be so
low," Ms Starr said.
This spending spree is broadly explained, she said, by the sharp rise in
housing prices in recent years which has left many Americans feeling rich.
Reinforcing the urge to splurge was the ease of borrowing, whether it is
financed on home equity or simply rung up on credit cards.
For some experts, the personal savings shortfall portends a social
security crisis as the first wave of baby boomers nears retirement. The
Commerce Department's report "is a wake-up call to start changing personal
savings behaviour", said Mr Marc Lackritz, co-chief executive of the
Securities Industry and Financial Markets Association.

hmmm..so is this problem only to some countries? maybe singapore also have? who don like shopping?haha