Seven of ten are women, most of them homemakers in charge of investing household savings.
Trillions of dollars in household savings evaporated as stocks, pensions, and home values plummeted.
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Huge slugs of household savings were channeled by Asian, and foreign, bankers into crony property companies.
Household savings fell to only 3.8% of personal disposable income last year, down from 6.2% in 1992.
In the new economic model, household savings rates plummet, because the consumer becomes both saver and borrower.
Second, it will facilitate further deleveraging even without an increase in household savings.
This sounds bad, but should be evaluated in terms of our demographics, low unemployment rate, attractiveness to foreign investment and rising household savings.
But it also confiscated anything it wanted, ranging from household savings (through currency reforms) to the lives of its citizens (via slave labour).
Household savings have risen in the US, the UK and other deficit countries, because consumers are borrowing less in the wake of the financial crisis.
At 4%, the household savings rate has jumped sharply from its low of near zero, but it is still far below its post-war average of 7%.
But by 2010, the Goldman researchers predict, stocks and mutual funds will climb to 39% of household savings and insurance to 34%-while bank deposits drop to 18%.
Chinese household savings (obviously influenced by many things, not just demography) reached almost 25% of GDP in 2008, helping to finance investment of an unprecedented 40% of GDP.
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In addition, April of 2010 saw a household savings rate of 3.6%, compared to 3.1% in March, and it has remained over 3% since the fourth quarter of 2008.
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The government's debt is offset by financial assets and girded by domestic household savings in the banks which buy Japanese Government Bonds (JGB's)--of which 95% are held by domestic investors.
We disagree and expect growth to remain relatively strong due to plentiful liquidity, the impact of low real interest rates, falling unemployment, and the high actual level of household savings.
The latest data on growth in jobs, retail sales and housing starts, and the record level of household savings, underscores the solid economy described by Fed Chairman Ben Bernanke last month.
The makings of internal demand are there--as veteran investment bank economist George Magnus notes in his new book about emerging markets, Uprising, India and not China has the highest household savings rate in Asia.
The German household savings rate, at around 12%, is higher than the rest of Europe's and the government's short-term working schemes--in which wages are topped up to help companies avoid layoffs--has kept unemployment in check.
Currently, only a very low percentage of the household savings of Indians are invested in the domestic stock market, but with GDP growing at 7-8% annually and a stable financial market, we might see more money joining the race.
Incomes were good, everyone had a job, household savings were above the national average, neighborhoods that now are unimaginably blighted were filled with house-proud families like mine who imagined a wonderful future in which their children and grandchildren would find even better homes, perhaps living in upscale Strathmore, Bradford Hills, Sedgwick Farms, or Fayetteville.
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We expect 1.7% growth in real personal consumption expenditures in the four quarters ending September 2008 even under our soft-landing scenario, below the 2% four-quarter low in the 2001 recession (see graph and further discussion in the attachment.) In recent years, we predicted and explained the resilience in U.S. consumption growth in terms of job prospects and the high actual household savings rate.
Despite the misleading personal savings rate (negative because it arbitrarily excludes gains from income), the U.S. has more household financial savings than the rest of the world combined, an even bigger lead if tangible assets like houses and cars are counted.
Household and corporate savings have risen sharply, while the flip-side of the poor employment outlook is that US productivity has taken off.
Over the past two decades, both household and national savings rates have declined sharply in the rich world, even as lengthening lifespans have added new risks to retirement (see chart).
If there is a company sponsored 401(k) the rules regarding distribution may be different than the rules in an IRA. If the household has after tax savings it may be advisable to delay taking income from the pension rollover to a later date when it will not be as restrictive.
But in China, where most savings are in the form of bank deposits and where earnings on savings are a significant portion of total household earnings, lowering deposit rates tends to increase the savings rate.
The most fundamental is that within a few years existing and new issue government debt may absorb all private savings (corporate and household) in Japan, making foreign borrowing inevitable and creating a terrifying scenario of higher yields demanded by foreigners raising MOF interest costs while inflicting portfolio losses on JGB holders, and putting fiscal balance further (infinitely?) beyond reach, with (by then) predictably horrendous consequences.
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The firm's move deeper into the asset-management business comes as more Japanese financial institutions seek to tap the huge amounts of household money sitting in low-interest savings accounts, but often lack the expertise in offering them attractive products.
" Malpass is optimistic about growth: "The huge new pools of liquidity--in corporations, central banks, petrodollars, private equity, hedge funds, foreign savings and the U.S. household sector (the largest pool of liquidity by far)--will take time to use up.
" Malpass is optimistic about growth: "The huge new pools of liquidity--in corporations, central banks, petro-dollars, private equity, hedge funds, foreign savings and the U.S. household sector (the largest pool of liquidity by far)--will take time to use up.
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