Savings Rate the Worst Since the Great Depression

Economic news on the whole seems to be decent. The issue is what looms over the horizon:

Last month, and all last year, people once again spent everything they made and then some, pushing the personal savings rate to the lowest level since the Great Depression. The savings rate is a gross figure derived from subtracting personal spending from disposable personal income.

Commerce said Thursday that the savings rate for 2006 was a negative 1%, meaning that not only did people spend everything they earned but they also dipped into savings or increased borrowing to finance purchases. The 2006 figure was lower than a negative 0.4% in 2005 and was the poorest showing since a negative 1.5% savings rate in 1933 during the Depression.

The reality is that we are going broke as a nation. And its only a matter of time before the whole thing comes crashing down as it did in the 1930s.