In 2005, the U.S. savings rate hit it's lowest level since 1933. Personal savings dropped to negative 0.5%, which means that Americans spent more than they made and dipped into their savings to make up the difference. The only other time the savings rate has been in negative numbers (according to the article published in 2006) was in 1932 and 1933 – prime years of the Great Depression. Analysts argue that a cause for the increased spending was consumers' confidence in the value of their homes.
I wonder how confident consumers are feeling about their homes in 2008?