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Americans' Debt: Worse Than You Think?

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http://finance.yahoo.com/columnist/article/moneyhappy/2643

Americans' Debt: Worse Than You Think?

by Laura Rowley

Friday, February 17, 2006

You've probably heard that the American savings rate for 2005 was negative 0.5 percent, the lowest since the Great Depression. The annual savings rate has been negative only twice -- in 1932 and 1933, during the Great Depression.

But Americans may be saving even less than the government reports. Consider the way the Commerce Department's Bureau of Economic Analysis calculates the savings rate: It takes a household's after-tax income (wages, salaries, interest income, rental income, dividends, social security, unemployment benefits, etc.) and subtracts spending on consumer goods and services (food, clothing, entertainment, etc). Whatever's left over is savings. But the government doesn't figure housing expenses into the spending-saving calculation since it views housing as an investment.

:o:o:lol::lol::ph34r::blink::wacko:

Edited by OnlyMe

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But Americans may be saving even less than the government reports. Consider the way the Commerce Department's Bureau of Economic Analysis calculates the savings rate: It takes a household's after-tax income (wages, salaries, interest income, rental income, dividends, social security, unemployment benefits, etc.) and subtracts spending on consumer goods and services (food, clothing, entertainment, etc). Whatever's left over is savings. But the government doesn't figure housing expenses into the spending-saving calculation since it views housing as an investment.

My mouth is hanging open; my brain simply refuses to process that last sentence.

Surely rent and maintenance have to be treated as expenses, especially if rental income is included as income. But even so; that's a horrifying abuse of statistics.

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Yes america is ready to pop and it's not just house prices that are going to go down.

Average public and private debt in the USA is $108k for ever man , woman and child so the working man must find the extra money to pay interest on about $300k loan each month.

GW-Bush the game is up and maybe now you will pay for pulling off your 9-11 stunt and killing your own people.

Don’t measure the strength of the pound against the USD$ but watch it against the Euro since I see both the £Pound and $ dropping big time.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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