Spain's household savings rate fell to its lowest level on record in the third quarter of last year as high unemployment and wage deflation in the latest recession obliged them to devote more of their disposable income to consumption, according to figures released Wednesday by the National Statistics Institute (INE). (carnegieendowment.org)
• Asset prices slide precisely when demand for liquidity rises • US household savings rate = 7 % of after - tax income and rising • But not yet high enough • And every dollar saved is a dollar not consumed • US household debt as % of disposable income 36 % 55 % 65 % 133 % (all - time high) 124 % 1952 1960 1985 2007 August 2009 (slaw.ca)
But the reason price growth in staple items / rates is now so important is because the US household savings rate has moved from 10 % to just 3 % since 2012. (etfdailynews.com)