exxon recorded $40B profit---personal savings in US, lowest in 75 years....any connection?

Question

http://www.theglobeandmail.com/servlet/story/RTGAM.20070201.wussavings0201/BNStory/Business/home

heckofva job

Answer 1

There is very little correlation between net profit of $40 Billion for Exxon and a low savings rate. Ever think that maybe a low savings rate is because spending more money? People may feel the economy is ok and thus they will be able to buy that new t.v or car or whatever now and because of the strength of economy, they will be able to pay for it and maybe make more money?

And besides, people do not save today how they did years ago, which was by putting their money into savings Accounts and Cd's at the bank. Now people are putting it in the market and into retirement accounts that don't necessarily get counted as savings because they do have the potential to lose money. However, the stock market rises on average about 3-4% per year and that is better than what people get in an average savings account at a bank who pays about 2%.

So people aren't saving as much money as in the past at least not according to banks, who by the way are for profit organizations who want your money in them so they can lend it out. If you know how banking works it should be no big surprise that people don't want to put money in the bank and earn a minuscule interest rate when at the same time there are markets available with better interest rates and almost no extra risk. People believe in their future ability to make money so they spend a little extra right now. Thanks and have a nice day.

Answer 2

While these sorts of profits are crazy, the connection you claim isn't as strong as maybe you'd want to believe.

The low savings rate has many factors, including that people today spend more on discretionary items than ever before. Gas costs, as a percentage of income, hasn't actually changed much (when you adjust for COI, inflation, changes in driving habits, etc.).

We're being encouraged to be consumers. That was the explicit point of President Bush's economic stimulus plan from a few years back. Spend money! Don't save.

But, yes, a $40B profit is a lot.

Answer 3

OK first off Profits are good, Probably most 401k and pension plans in the USA have Exxon in the portfolio. Next savings by Americans is recorded only as regular Bank savings Accounts. THEY do not count IRA's 401K's and stock and Mutual funds in this calculation. How many people realistically still put a lot of money into PASSBOOK savings? I typicallt put 16% 401k and another 14 percent in the others and probably only less than 1% IN REGULAR SAVINGS. Since my checking account earns as much interest as my savings I believe this is the way most people are doing it so the INformation is useless.

Answer 4

DON'T BE SHEEPLE!!! Just remember to always keep in mind. That what's good for Exxon is Good For You... The Government doesn't care about you they care about your vote and your money of course in their pockets telling you how it needs to be spent.. If you only knew how wrong and against our constitution these taxes are you would be mad. Just keep in mind that your taxes goes to the Federal Reserves ( International Bankers). Which is the group who created our tax system through that wonderful backdoor deal on Christmas in the congress... Do The Research First,,, Before you take any politician at their word. We The People Need To Take Our Country Back,, Kick Out The Federal Reserve and IRS.... Government was for Roads, Police, Fire and I wouldn't trust them with anything else.. We use to run our own schools and they were great until the Government took them over by the Teachers Union..By the way The TEACHER'S UNION IS THE BIGGEST SHARE HOLDER OF EXXON MOBILE!!! Doesn't that scare you....

Answer 5

just a typical sign of the "corporate economy" doing well. Too bad the 300 million people in the U.S. aren't corporations.

Answer 6

only if you're a lefty...remember those "record profits" are used to pay dividends to investors like you're bank and you're union pension fund

Answer 7

Yup, pretty sure.