Great news. It indicates that there is some cushion if the economy stalls. I think it also means there is more available to spend if consumers get irrational - which would extend the economic expansion.

https://www.wsj.com/articles/a-surprisin...1534604400

Quote:On the eve of the last two recessions, American households were unprepared. Years of appreciating stock portfolios, rising home values and improving job prospects had convinced consumers that they didn’t need to save much of their income.

So when unemployment rose and asset prices fell in the downturns that started in 2001 and in 2007, consumers drastically reined in spending and the economy contracted.

Until a few weeks ago, some economists feared history was in the process of repeating itself. Official numbers suggested saving was again out of style as the current expansion enters its 10th year.

Recent data has altered the picture. Households have been saving significantly more of their after-tax income for several years, according to revised data released last month by the Bureau of Economic Analysis.

Take just the first quarter of this year: The agency more than doubled its estimate of the personal saving rate–the difference between disposable income and spending—to 7.2% from the 3.3% estimated previously.

The new number exceeds the 6.4% average rate recorded since 1990, and is almost three times the most recent low of 2.5% in 2005.

It doesn't say so in the article, but I read recently that a very large percentage of Americans could not write a personal check for $500 for an emergency expense.

Like a table service emergency?

C’moooooon. Who ain got 5 bills for that?!?

I remember when my sons were little and every time I was going to have money left over after bills that they would get sick. It never failed. There were some times when I was happy that I was going to be able to buy a 6 pack but then got reminded that there wasn't any milk. Egad!