>> One year after the fall of Leman Brothers triggered a financial hurricane, the stock market is on a rebound these days. The Dow finished the week at 9820 up 50% from its March low. So here with more on where the economy stands right now and where it might be heading is Jill Schlesinger, editor at large or CBSmoneywatch.com. Jill always good to see you especially in these times now where people are maybe somewhat excited to open their 401K statements or at least a little bit more. So let's ask how has this crisis changed the way investors feel?
>> Well obviously people were so anxiety ridden through the depth of the crisis back in March. People have actually retained a little piece of that they are still pretty conservative. Some of the surveys show people putting less money into stocks in their 401K plans than they used to and there are some people who aren't even participating as much as they used to. I think that will start to change as the market holds these levels for awhile.
>> Speaking of conservative let's talk about the savings rate because in July the personal savings rate was at 4.2% compared to 1.3% last September. This is one of the things that got us in trouble the savings rate being so poor. Does that trend continue up?
>> We are hoping so this is the best thing that has come out of the crisis people are starting to live within their means and save more. You know back in the 80s we used to save 10% of every dollar we earned. It actually went negative in 2006. We have a lot of rebuilding to go and frankly there's still a lot of debt on people's balance sheets, they gotta pay that debt down, they've gotta save more. This is a great trend. We're hoping it keeps going a bit higher.
>> Meanwhile there's some other trends that have come out of this crisis we've been talking about that are interesting to point out.
>> Well employment trends specifically we are seeing more people going into healthcare and out of finance. According to Harvard when they looked at their graduating class half as many people going into finance as a year ago, twice as many going into healthcare, that's an interesting trend. Another one that I think is sort of a strange and funny one divorce rate has gone down. Of course a lot of people can't afford to get divorced and some people call this the sleeping with the enemy trend that divorce is down about 40% from where it was a couple of years ago.
>> Wow alright so 1 year later as we look back and look ahead the worst is over we think. How long is it until we see full recovery or much better times?
>> Well I think if we use your earlier analogy about the storm, we have truly lived through a storm of the century, the rebuilding and the recovery is going to be long, it's going to be tough but we'll get there. I have a very good feeling that a year from now we're projecting that things should look better, firmer ground for most people and I believe that American's will be on a better path to build a more sustainable financial future from here.
>> And we look forward to that. Alright Jill Schlesinger for moneywatch.com thank you very much.
>> Thank you.
==== Transcribed by Automatic Sync Technologies ====
