You may have missed the report that came out this morning and do not realize there was a revision to last year's analysis.  The Bureau of Economic Analysis (BEA), which gives out accounts of personal savings rates, made several upward revision's in the personal savings rates for 2004,  2005 and 2006.

In 2004, the revisions were not as dramatic as for 2005 and 2006, but were good to see nonetheless.  2004's revision showed a slight change in the savings rate to 2.1%, up from 2.0%.  More impressively, 2005's revision to the personal savings rate rose from negative .4% up to .5%.  However, the most impressive change was to last year's analysys.  The 2006 revision went from the negative 1% to a positive .4%!!!

So, essentially, the BEA had been reporting a negative savings rate when in fact the rate was positive.  Today's report showed the current savings rate is .6%.  While this is all good news, it does not deny the need for proper equity and debt management.