Support 'America Saves Week' or Spend?

Econophile's picture

From The Daily Capitalist

Somehow Comptroller of the Currency John Dugan didn't get the message from Team Obama about encouraging consumers to spend. As you know the Administration's economic advisers see vigorous consumer spending as the solution for overcoming our recession. Consumer spending formerly represented 70% of the economy.

Apparently the consumers are getting the message without Mr. Dugan's help since personal savings have been increasing since the economy tanked:

Personal Savings 12-09

I agree with Mr. Dugan that we all ought to be saving more in order to protect our personal financial well being:


WASHINGTON — Comptroller of the Currency John C. Dugan today issued the following statement in recognition of America Saves Week, February 21 – 28, 2010:

 

Encouraging and increasing saving is important to both consumers and financial institutions.  Opening a savings account is the first step in helping a consumer achieve his or her financial goals, such as purchasing a home, creating a college or emergency fund, or retirement.  Over time, saving allows consumers to accumulate assets, build wealth and feel financially secure.

 

I commend the Consumer Federation of America for its ongoing efforts with the America Saves Week campaign.  I also want to recognize the commitment of national banks across the country to encourage saving as a way to create economic stability and to expand financial services in their communities.

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dumpster's picture

visit a dumpster ..resolve to dive a day,, with the bits of food, used clothing , misc goodies ,,

a person can use the savings to prop up the banks , instead of spending the same on food, new clothing and misc goodies

then when things start to get ruff .. one may wish to visit two a day,,, do this in your spare time ,, from the hours between 12 mindnight and 5 in the morning ,, go  home ,,, or to the bathroom at the hotel,, wash up..

get in line at the unemployment office,  

for a stronger america ,, spend

 

Kreditanstalt's picture

OTOH, they DO want people to "open savings accounts", presumably at banks. 

Does John Dugan advocate saving in gold, or saving in a shoebox? 

Shoeboxes?  Is Dugan on-message with Sheila Bair or with Suze Orman?  Or is his faith in banks misplaced?  Or intentional? 

Ned Zeppelin's picture

Don't forget either: "saving" doesn't mean saving. The consumers are MAXED out. What they are calling "saving" is really "Not spending any more funny borrowed money". Huge difference.  Savings implies a choice, a change of attitude, a quantum shift from spending available cash to prudently saving it. This is NOT the case. all that is going on is Forced Cessation of Borrowing, as all available cash goes to service the mountain of debt. This is reality for many not all but enough to change the way things will look for a long time.

get it straight, and you've got it. 

TonyForesta's picture

Spend what?   The predatorclass in their lofty perches and oppulent mcmansions can spend and ghoulishly take advantage of stressed properties and retailers, - but the rest of us are just hoping to keep a roof over our heads, food on the table, and our kids clothed.  Credit cards are out.  First, the banks are a ruthless abusive "den of vipers and thieves", and charge so much, and change the rules and rates so often, that it is prohibitive, not to mention, injurious to spend any money on a creditcard.

 

second and more important, -  we don't have gainful employment, our houses are underwater, and we have no representation in the conduct of the government (which is purchased, owned and controlled by the predatorclass) - so we don't have any money to spend, or save!

Anonymous's picture

but spending is saving. when you spend, you save the economy.

Dirtt's picture

Echo Chopshop. And I would call it a complete washing out rather than hyper -deflation because once prices collapse credit will finally find its way back in the market because with prices that cheap the population now considered credit worthy grows considerably.

"America On Sale"

Yophat's picture

Rep. Brad Sherman, California Democrat, asked Mr. Bernanke directly whether the Fed would consider such a strategy, especially since IMF officials endorsed it.

"We're not going to monetize the debt," Mr. Bernanke declared flatly, stressing that Congress needs to start making plans to bring down the deficit to avoid such a dangerous dilemma for the Fed.

"It is very, very important for Congress and administration to come to some kind of program, some kind of plan that will credibly show how the United States government is going to bring itself back to a sustainable position."

http://www.washingtontimes.com/news/2010/feb/25/bernanke-delivers-warnin...

 

Say hello to hyper....deflation!!!

Ned Zeppelin's picture

Please, please, please people.  Gather 'round if you are still confused.  If you want people to keep buying USTs, you HAVE to say this, OK? Even if you don't mean it. You KNOW this, right? This is Selling 101. 

(From back of snake oil sales truck) (effect southern accent for true understanding) "FOLKS, I IMPLOY YA! I am not from NEWYAWK. I am the real DEAL. No sirree, we are not going to just manufactchuh piles of this stuff outta thin air, no suh. We is selling GENUINE, No. 1 quality debt heah, not that shit Greece and those Eurotrash peddlars would have you buy and lose every last cent of yo hard earned MONEY. Now, who wants to step up fust and own one of these here GENUINE 100% GUARANTEED debt instruments? You, thea in the back, yes you . . . . "

 

Shameful's picture

Zimbabwe Ben said no monetizing the debt, but this very blog has found evidence of it. So the question is who do you believe Tyler, an anonymous blogger from the wilds of the internet, or Chairman of the Federal Reserve Ben Bernanke testifying under oath before congress...like it's any real contest :)

Yophat's picture

Enough to reverse the deflationary spiral....or just control the descent?

Shameful's picture

So now you are willing to believe he is lying but have faith that he will steer us through this. Shit man by all means buy dollars. I want you to, I want everyone to put the bid up on dollars like crazy. It's totally a rare resources, it's not like some lunatic can just wizard it into existence at a whim. So please buy dollars, this guy is paid in dollars, with a super stable gig. And look at Uncle Ben, he is totally a guy who can thread the needle on this bad boy. I mean it's not like he has made a wrong prediction in the past 5 years...

And you really think Uncle Ben would let his buddies down and not provide endless money? I don't know the guy but I don't get the vibe of him being able to resit Dimon's and Blanfein's "charms". But hey here is to hoping your right! And remember buy dollars!

Yophat's picture

LOL  Oh he will steer us down the path all right....but not one we want....and it will be painful!

Check out Obama's executive order creating 10 military governors for 10 FEMA regions....more here -  http://yophat.blogspot.com/2010/01/executive-order-fema-governors.html

Yophat's picture

Recent events in Europe, where Greece and other nations with large, unsustainable deficits like the United States are having increasing trouble selling their debt to investors, show that the U.S. is vulnerable to a sudden reversal of fortunes that would force taxpayers to pay higher interest rates on the debt, Mr. Bernanke said.

http://www.washingtontimes.com/news/2010/feb/25/bernanke-delivers-warnin...

 

Yophat's picture

With uncharacteristic bluntness, Federal Reserve Chairman Ben S. Bernanke warned Congress on Wednesday that the United States could soon face a debt crisis like the one in Greece, and declared that the central bank will not help legislators by printing money to pay for the ballooning federal debt.

http://www.washingtontimes.com/news/2010/feb/25/bernanke-delivers-warnin...

SteveNYC's picture

Loan Shark: "Hey, you know you should stop spending all this money on crack and shit dude"

Addict: "Yeah man, this is my last hit, I promise"

Loan Shark: "Ok, here ya go. Now, don't spend it all at once.....or do....."

 

Bernanke is the enabler. In an intervention, the enabler also must seek reform. This fucker needs reform or worse.

Yophat's picture

I've been watching helicopter Ben's hands....and this is the other one!

Sancho Ponzi's picture

Save a ton by not paying your mortgage:

'Obama May Prohibit Home-Loan Foreclosures Without HAMP Review'

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahuuwBS8KYq8&pos=2

If Congress is dumb enough to pass this legislation, it will be a death blow for states and cities. Kiss those property taxes goodbye, suckas!


 

Dirtt's picture

That will only work if you own a house the bank doesn't want.  If your pad is worth keeping then that is not an option.

Shameful's picture

Right, and who will they come hat in hand to? And I'm sure Uncle Sugar will happily give them money fresh from the printing press if they will surrender a little autonomy to Uncle Sugar. That's only fair right?

Sancho Ponzi's picture

Yup, It's all part of the plan

Anonymouse's picture

Easy.  Do both.

- Save money from you paycheck / unemployment insurance check

- spend using an equal (or greater) amount on your credit card.

If that makes you uncomfortable, that's ok

- Spend money from your unemployment insurance check / paycheck

- get an ATM cash advance from your credit card and deposit it in the bank

Together, we can get America moving again.  Yes, we can!

Postal's picture

Let's see, so I should spend (fiat) money I don't have to buy over-priced, cheap-ass Chinese imports, and all the while being unable to sue the bastards when their junk goes haywire because I had to waive my right to sue as a condition of business. [Why are individual consumers treated as LLC's?] I sent my Congressman an letter this week asking that exact question.

Why should I buy a house, car, or any other consumer item? From my perspective, I'm better off buying gold or silver, freeze dried food, and bottled water--which is exactly what I'm doing.

Chopshop's picture

support cause everyone was going to anyway, so, like most else, pretend ya had a cause n ideal in mind (after-the-fact).

Mr Lennon Hendrix's picture

I would save Doelarrs if they were not stupid fiat reys of light from the great ponzi in the sky!  "Quicker than a rey of light (the doelar) is flying" thanks kaballah madonna, you have more economic knowledge than regulators.  The doelarr does not have much time left, 1.5 cents to be exact. 1,000 points of light have had their day.  The doelarr is on the Xross, and will be removed on March 4th and layed to rest.  but do not worry, they have a solution.  global currencies.........

DoChenRollingBearing's picture

As my (net) income rolls in, I will spend 50% on gold.

The other 50% I will hold as cash, real cash.

Is the above plan saving? Spending? Both?  LOL.

My rationale for the above is I think we have deflation for awhile, then (hyper?)inflation not too much later.

Anonymous's picture

Sure, my accounts with Simmons and Sealy will be seeing large inflows.

SteveNYC's picture

Haha, yes, Mr. Mattress, Mr. Safe and Mr. Offshore Account are guardians of my savings too.

Problem Is's picture

I KNOW! I KNOW!

Buy gold.

I spend... Makes dickwad Mr. Change happy.

Yet I save... My ever devaluing Bennie Bernank-ster Bucks from toilet paper status in a savings form of stored value.

That is a Win-Win answer. Right?

I helped America, helped my beloved government and my beloved government helps their beloved TBTF idiot banks...

Anonymouse's picture

Here's an idea.  Why don't we adopt Congress' definition of saving.

I was going to spend, oh say, $2MM more this year compared to last year, all of it to be borrowed since I am unemployed.

Instead, I think, I'll just borrow and spend $1.8MM.

That's a saving of $200,000.

Come on America!  Let's do our part!