Americans have poured record amounts of money into savings accounts even though interest rates are at historic lows, new federal data show, a sign that average people may be missing out on a booming stock market and recovering real estate sector.
The total amount in those accounts climbed nearly 5 percent to $6.9 trillion in the spring, the highest level recorded since the Federal Reserve launched its regular reports on the flow of money in the economy in 1945. At the same time, other data show that Americans are fleeing the stock market and avoiding the purchase of new homes.
The pattern suggests that Americans, wounded by the financial crisis and scared by an uncertain job market, do not want to take any risks with their money — even as the government is encouraging risk-taking.
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Filed under: * Culture-Watch History Psychology * Economics, Politics Economy Consumer/consumer spending Corporations/Corporate Life Housing/Real Estate Market Labor/Labor Unions/Labor Market The Banking System/Sector The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- The U.S. Government Federal Reserve * International News & Commentary America/U.S.A.
Posted October 2, 2012 at 4:40 am
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