For years financial analysts have been wringing their hands over the low U.S. savings rate. Well guess what; we are no longer a nation of spendthrifts: the Commerce Department reported that the personal savings rate soared to 6.9% in May -- a 15-year high, while spending rose by a modest 0.3%. This is potentially bad news (believe it or not) because to get the U.S. economy moving again consumers need to spend. Then again, how can you spend if youâve lost your job or fear losing your job? But there could be a silver lining to this bad news of âsavings fever.â All that saved up money might, potentially, be used to for downpayment money on a new house. This might even lead to lower loan-to-value ratios on mortgages. Or am I dreaming?
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