So Long, And Thanks For All the Savings

So, is that it then? Are we already deciding that this whole “savings” this is just not that much fun? Two data points make a trend, as that hoary journalistic saying goes, and we have now had two months in the U.S. of declining monthly personal savings (according to BEA data).

savings

[via Bloomberg]

Maybe, but I’m not there yet. This is more likely a bounce off a record low level of discretionary spending, not a return to bygone days of declaring one’s credit cards as personal savings. Of course we could see a temporary flatlining in here at 4-5%, but I’m guessing that a year from now, all economic else being equal, the U.S. personal savings rate will be higher than it is today.

Anyone want to take the other side? Make your case.