02-01-2006, 10:27 AM
Quote:U.S. consumers spent more than they earned in 2005, resulting in a negative rate of saving for the first time since the Great Depression, the government reported Monday. Savings as a percentage of income fell to minus 0.5 percent in 2005, down from 1.8 percent in 2004.
The negative saving rate "is a cautionary sign for future spending as sometime in the future, we need to get our financial houses in better order," says Joel Naroff, president of Naroff of Economic Advisors.
However, other economists said the measure was a misleading gauge of Americans' balance sheets...
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