Being underwater and being unable to swim

An interesting article in the Tribune. "6 states account for almost 60 percent of homeowners with mortgages higher than homes' value. Here's a shocker: almost half of Nevada homeowners with a mortgage owe more to the bank than their homes are worth. Here's another: If you add in the homeowners like them in California, Arizona, Florida, Georgia and Michigan, together they account for nearly 60 percent of all homeowners who are "underwater" on their mortgages. Nationwide, almost one out of every five homeowners with a mortgage owes more to their lender than their properties are worth."

Another insightful story- Consumer Spending Slowed in September, Signaling Depth of Economy’s Troubles.

Some data:

Personal spending fell 0.3 percent last month, the biggest decline since June 2004.

Incomes rose 0.2 percent in September, just half of the August increase.

Wages and benefits paid to workers rose 0.7 percent in the third quarter.

Personal saving as a percentage of disposable personal income was 1.3% in September, up from 0.8% in August.

The spending report showed that an inflation gauge tied to spending edged up 0.1 percent in September, and posted a 0.2 percent rise excluding energy and food. Prices over the last 12 months are up by 4.2 percent.

Consumer confidence in October fell to 57.6, the biggest one-month drop in the survey's history, which dates to 1978.

Personal savings in countries like China exceed 30%. These are the countries that lend money to us so generously.
Quite a few of the CNBC "guests" and anchors have argued for years that the savings rate is not important it only accounts for savings as a % of income, and does not use the gains in asset values, like the increase in home values or in equities and the like.
Well, with the downdraft in the markets and 20% of mortgages under water, these bozos should come forward and explain why the savings rate is not important.