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 Another new low for the debt economy.
There is a financial hurricane on the radar, and this country is ill
prepared
to weather the storm…
WASHINGTON
— Americans’ savings rate fell to a record low in July while manufacturing
showed
signs of
slowing
in August, worrisome economic news amid uncertainty over how much of
Hurricane Katrina will hit the economy.
A group of economic reports yesterday showed the economy was buffeted
by high oil prices even before Katrina shut down production along the
Gulf
of Mexico earlier this week and sent the price of gasoline and other
products soaring.
The Commerce Department reported that consumer spending rose by 1 percent
in July, matching a strong June gain, as Americans streamed into auto
showrooms to take advantage of sales enticements.
However, incomes rose by just 0.3 percent, not enough to cover the increased
spending. As a result, the savings rate fell into negative territory
at minus 0.6 percent, the lowest level on record.
With the mania for refinacing, the amount Americans
have saved in their houses is declining, too. Where do you think the
extra bucks to fillup the tank are going to come from?
from the Boston Globe
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