USA – savings rather than consumption

The deposits of commercial banks increased 1.7 percent and reached 7,500 billion USD in May. If the savings rate rises with the same intensity, a new recession could hit the economy.

In the first quarter of this year, the net assets of the population were decreased by 1300 billion USD which approaches to the 2004-level essentially. In the last quarter of the last year the net assets of households were decreased by 4900 billion dollars which is a record of all time.
The huge assets decrease increased the willingness for savings, however, a further reduction in consumption can delays the recovery from the crisis.
According to Economics Professor Nouriel Roubini -who became famous, predicting the current crisis long time ago – if the savings rate reaches 10-11 percent, that can be considered to be critical. However one of MasterCard's leader indicated that the dramatic decline in consumption has been significantly slowed down – reports Tőzsdefórum.