Megan McArdle’s blog Asymmetrical Information tackles issues of savings and retirement. Here are a couple of links.
Ask the Blogger. Worried Savers Edition. Link
Sorry, Folks: One Way of Another, You’ll Never Be Able to Completely Count on Retirement. Link
Megan McArdle has an interesting article on her blog: Why Don’t Americans Save? She discusses some theories as to why savings rates vary among rich/poor and whites/blacks/Hispanics.
New Fed Data: Economy Drowning in Federal Debt
E21 provided some analysis of the most recent release of the Federal Reserves Flow of Federal Funds. Link.
The analysis reports some troubling statistics:
The U.S. national balance sheet continues to deteriorate, with a record $56.3 trillion in gross debt outstanding relative to $15.8 trillion in national income (GDP). At 357% of GDP, gross debt continues to set records relative to the size of the economy. Although this negative news is offset somewhat by the increased value of stocks and homes, the basic message to be drawn from the Fed data is that the economy is drowning in debt, nearly all of the recent increase of which has come from the Federal government.
In a previous post I looked at recent data from the Bureau of Economic Analysis which show a similar dearth in private savings as well.