[expat_panama]

"personal savings" rate is not in any way a good proxy for the rate of capital formation

If the falling "personal savings" had anything to do with making sure we have something set aside for the future, then America's increasing private wealth means we're all better off savings as little as possible.

[stefan10]

really
So we found a new way of capitalism with never ending growth and increasing private wealth for all of us.

then all americans just have to spent more of their home equity and this will go on forever?

And when they can no longer pay the mortgages they simply sell their houses and will get these huge prices and benefit from their increasing private wealth.

WOW sounds like paradise but even if htis would be true the saving rate would still bne negative and the current account deficit would still be huge and you would still need foreign money from china the middle east and all the other countries.
So the article is still true beside the fact of growing net wealth ( realized or not).