U.S. personal savings rate crashes to 13-year low

Wages and consumer spending may be picking up, but the savings rate is crumbling to pre-recession lows, and that is certainly terrifying.

According to the Bureau of Economic Analysis (BEA), the United States personal savings rate plunged to 2.4 percent, the lowest level since 2005.

Meanwhile, consumer spending rose 0.4 percent in December, the biggest jump in seven years.

As Americans were spending more on automobiles and televisions in recent months, they were putting less in their savings or investment accounts.

It is deja vu all over again. Have Americans learned nothing from the Great Recession?

When the economic collapse happens, consumers will once again be overextended, deeply in debt, and zero emergency savings to bail themselves out of the hole they’re in.

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