June 28, 2009

Shopping is dead, revisited

In March I blogged about the increasing U.S. savings rate and some possible implications. In the last couple of months it has continued to increase, and in May it was at 6.9 %. That is a far more sustainable level than the bizarre no or negative savings level the U.S. has had in the last few years, but it also means that consumption-driven recovery will likely take more time than many hoped.

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