Gary North

April 11, 2008

In a report by Eric Janszen, he includes this chart.

It reveals that in the year 2000, the typical family had about 30 days' in living expenses in reserve. Today, this is down to fewer than 20 days.

This indicates just how little saving is going on today. Americans have dug themselves into a hole financially. They are ignoring the threat of a recession on their employment. They are rolling the dice on a continuing boom economy.

That scenario is looking more and more implausible. As fear increases, we can hope that saving will increase. It has in previous recessions. But not in 2001. That is the recession we remember. We don't remember any bad effects. We only remember that we had one.

Down has gone thrift. Down have gone cash reserves.

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