According to recent studies (Goldman Sachs 2007), 1 percentage point decrease in the dependency ratio adds 0.8 per cent to the national saving ratio. Rodrik and Subramanian (2004) used estimation results by Mulheisen (1997) on India's consumption behaviour, which shows a one-to-one relationship between the dependency and saving ratios.
Our “near miss” with Salomon in 1991 presaged the enormous damage that would result from the failure of Lehman Brothers, another investment bank, in 2008. In fact, the dimension of the problem grew substantially over the years. Since 1991, the ratio of U.S. banking assets to annual gross domestic product in the United States has more than doubled, from 55 percent to 126 percent.