Soaring stock prices and improving job prospects have set Americans off on an optimistic spending splurge that is drawing down how much they sock away for retirement and rainy days. U.S. household net worth has risen from $56 trillion in 2008 to $97 trillion in the third quarter of 2017. It is natural for individuals to spend a bit out of rising lifetime savings when asset values are increasing. Economists call that a “wealth effect.”...

Source: Wall Street Journal January 29, 2018 13:41 UTC