Recovery at risk as Americans raid savings

By Jilian Mincer

and Jonathan SpicerPosted 2012/01/17 at 12:13 am EST

NEW YORK, Jan. 17, 2012 (Reuters) — More than four years after the United States fell into recession, many Americans have resorted to raiding their savings to get them through the stop-start economic recovery.

Vernon Tites, an out-of-work contractor from San Francisco, looks for jobs online at the Employment Development Department of California service office in San Francisco January 6, 2012. In an ominous sign for America’s economic growth prospects, workers are paring back contributions to college funds and growing numbers are borrowing from their retirement accounts.

Some policymakers worry that a recent spike in credit card usage could mean that people, many of whom are struggling on incomes that have lagged inflation, are taking out new debt just to meet the costs of day-to-day living.

American households “have been spending recently in a way that did not seem in line with income growth. So somehow they’ve been doing that through perhaps additional credit card usage,” Chicago Federal Reserve President Charles Evans said on Friday.

Click below to read the rest of the article:

via NewsDaily: Insight: Recovery at risk as Americans raid savings.

via NewsDaily: Insight: Recovery at risk as Americans raid savings.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: