2006 Savings Rate Negative

Hmm it seems that Americans are spending all of their disposable income plus 1%.

The savings rate is computed by taking the amount of personal income
left after taxes are paid, an amount known as disposable income, and subtracting
the amount of spending. Since the figure has dipped into negative territory, it
means consumers are spending all of disposable income and then some.

For December, the savings rate edged down to a negative 1.2
percent, compared to a negative 1 percent in November. The savings rate has been in negative territory for 21 consecutive months.

I wonder if this savings rate calculation takes into account that some Americans are having their IRAs automatically withdrawn from their paychecks? This automatic withdrawal might not come up in these numbers so boomers won't be left destitute when they retire.