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Real Disposable Income Has First Drop Since November 2011, Savings Rate Tumbles

Tyler Durden's picture


There were no surprises in the August Personal Income and Spending numbers, which came at 0.1% and 0.5%, respectively, on expectations of a 0.2% and 0.5% rise. Summarized: less income, more spending. This however, did not make the consumer income statement data any better: the bottom line is that adjusted for inflation, Real Disposable Income slid 0.3% in August, after a tiny 0.1% increase in July, the first such decline since November 2011, and as Bloomberg's Joseph Brusuelas says this is "another rough report for the consumer which doesn’t bode well for household spending going forward." Which means Bernanke knew precisely what he was doing when he launched QE3, which all advocated of QE3 will now say was fully justified. There is one problem with that logic however: for QE3 to be justified, it would mean QE1 and 2 were. Well, last we checked the US is still in a major depression, and neither QE1, 2, nor Twist 1 or 2 have done anything to prevent today's ugly data. Surely, this time it will be different. Finally, and as a result of the ongoing contraction in income, as expected the savings rate dropped from 4.1% to 3.7%: the lowest since May.

Spot the recovery in either the Real Disposable Income...

... Or the Personal Savings Rate:

Source: BEA


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Fri, 09/28/2012 - 08:55 | 2838201 GetZeeGold
GetZeeGold's picture still dead.


Let's get our priorities straight here.



Fri, 09/28/2012 - 08:55 | 2838220 HelluvaEngineer
HelluvaEngineer's picture least until the next time we need to kill him

Fri, 09/28/2012 - 08:59 | 2838229 GetZeeGold
GetZeeGold's picture



Gotta hand it to him......he's a team player.


Fri, 09/28/2012 - 09:04 | 2838261 HD
HD's picture

 Don't even joke about that. Wet, one-eyed zombie Osama is a badass...but still needs zombie dialysis.

Fri, 09/28/2012 - 09:12 | 2838280 GubbermintWorker
GubbermintWorker's picture

Momma told me.....


btw, I'd hit that blond sax player!

Fri, 09/28/2012 - 11:09 | 2838934 Ying-Yang
Ying-Yang's picture

Tyler, perhaps this is a rhetorical question, but why do they count the increase in cost of gasoline purchases in the August Personal Income and Spending numbers and then exclude fuel in the Consumer Price Indexes (CPI) program which produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services.

Heh... BLS, "Been Lying Statistically" so you don't really know what's going on.

Fri, 09/28/2012 - 09:16 | 2838310 HelluvaEngineer
HelluvaEngineer's picture

Whoever junked me, here's an item you might be interested in:

Case XX Smooth White Bone Commemorative Trapper "We Got Him" Osama Bin Laden CA42902

W.R. Case & Sons produced this 4 1/4" closed Trapper pocket knife in commemoration of Operation Neptune Spear which resulted in the killing of the worlds most wanted terrorist.

The main clip blade is embellished "WE GOT HIM! Operation Neptune Spear". The spey blade reads "Justice Is Served".

This impressive Commemorative Case Knife comes in a presentation case asserting "We Did Not Forget 9-11-01 God Bless America". With Certificate of Authenticity.

Fri, 09/28/2012 - 09:22 | 2838331 The Alarmist
The Alarmist's picture

Let's add a line to the case ....

"It only took $3 Trillion and a decade, but as always we got our man."

Fri, 09/28/2012 - 09:19 | 2838323 Muddy1
Muddy1's picture

Has the personal savings rate declined becausepeople aren't saving, o becase thebank runs have started in the US.  We read all the time about bank rns inother countries, but news about runs in the US , or large amounts of savings being withdrawn don't exist.

Fri, 09/28/2012 - 09:24 | 2838337 The Alarmist
The Alarmist's picture

You seem to have forgotten the lines in front of certain banks in 2008, but you have a point ... FDIC has been force-merging anything remotely in danger of failing into other larger, sometimes TBTF banks.  Why have 6000 problems when you can narrow it down to 6?

Fri, 09/28/2012 - 10:15 | 2838631 LMAOLORI
LMAOLORI's picture



Just wait until December if they don't pass that Trillions dollar legislation 


Fri, 09/28/2012 - 09:33 | 2838381 RiverRoad
RiverRoad's picture

If the personal savings rate refers only to saving in bank accounts, well natch.  Who the heck would be stupid enough to "save" in a bank?  That's oxymoronic these days.

Fri, 09/28/2012 - 09:36 | 2838397 Metalredneck
Metalredneck's picture

Long work socks.

Fri, 09/28/2012 - 10:02 | 2838546 LMAOLORI
LMAOLORI's picture



(this was news to me)

"income less outlays, means that paying down debt counts as "saving" 

Personal Income And Spending: What's That Smell?

Fri, 09/28/2012 - 08:51 | 2838203 firstdivision
firstdivision's picture

Personal Income M/M is approaching negative territory.  Also prior number revised much lower. Need iPhone6 and iPad4 on credit please!

Fri, 09/28/2012 - 09:41 | 2838421 Chump
Chump's picture

Found 27 cents under some papers on my dresser this morning.  This trend is looking good.

Fri, 09/28/2012 - 10:10 | 2838607 RSBriggs
RSBriggs's picture

Unfortunately that will probably bump you up into the next tax bracket and cost you $4,000.00


Fri, 09/28/2012 - 10:36 | 2838751 Chump
Chump's picture

Gonna cost you.  Who else is going to pay for my 17 blind dependents??

I am...the 47%.

Fri, 09/28/2012 - 08:52 | 2838205 samcontrol
samcontrol's picture

Huge f news, first time US government backs up stem cell and LOOK what it is for. INCREDIBLE

7:31AM Cytori Therapeutics awarded contract valued up to $106 mln by Biomedical Advanced Research and Development Authority to develop cell therapies for thermal burns combined with radiation injury (CYTX) 3.86 : Co been awarded a contract that may be valued up to $106 mln by the U.S. Department of Health and Human Service's Biomedical Advanced Research and Development Authority (BARDA), if all Contract Options are executed. The Contract is for preclinical and clinical development of the Company's cell therapy for the treatment of thermal burns combined with radiation injury. The aim is to evaluate and create a new countermeasure for thermal burns which would be useful following a mass-casualty event. Under the terms of the contract, successful achievement of specified milestones will allow BARDA to review and, at its discretion, consider the execution of Options and qualify Cytori to receive up to ~$101 mln in additional funding, if completely executed, to bring the technology through the FDA approval process for thermal burns under a device-based PMA regulatory pathway.

Fri, 09/28/2012 - 08:53 | 2838208 GubbermintWorker
GubbermintWorker's picture

Uh oh!

Fri, 09/28/2012 - 08:56 | 2838222 Jason T
Jason T's picture

there is a story right at the top of this page "Will Isreal Launch a False Flag Against Iran to Start War"?

new dark age coming i'm afraid..  prepare to eat squirrals like they did 80 years ago.

Fri, 09/28/2012 - 09:04 | 2838260 GubbermintWorker
GubbermintWorker's picture

Glad I have my .22 sighted in!

Fri, 09/28/2012 - 10:44 | 2838801 Chump
Chump's picture

Such an underrated, fantastic caliber.  +1

Fri, 09/28/2012 - 09:08 | 2838282 Dr. Engali
Dr. Engali's picture

Just don't shoot them with buckshot. It's no fun biting down on a chunk of lead.

Fri, 09/28/2012 - 09:30 | 2838368 mayhem_korner
mayhem_korner's picture



No different than watermelon seeds, really.  Just spit 'em out.

Fri, 09/28/2012 - 09:07 | 2838279 mayhem_korner
mayhem_korner's picture



So the threat of a nuclear strike is the new rationale for stealth support of abortion?

BTW...stem cells have been in use for a very long time (see StemGenex, for example)  The premise that the US government is backing stem cells for the first time is misleading.  It's the unproven embryonic stem cells that the govt weighs in on...which is nothing more than the a wing of the abortion platform.

Fri, 09/28/2012 - 09:17 | 2838312 LawsofPhysics
LawsofPhysics's picture

Exactly.  Two of my colleagues from college have been working in this area for 30+ years.  All government funded.  Stupid fucking sheep.  Good thing I like lamb.

Fri, 09/28/2012 - 09:16 | 2838311 GeezerGeek
GeezerGeek's picture

Thermal burns, huh? Has DHS been secretly been buying napalm along with all those hollow-point bullets?

Fri, 09/28/2012 - 09:22 | 2838327 scatterbrains
scatterbrains's picture

no this is just for when those airport scanners get jammed...just a slight burn no worries.

Fri, 09/28/2012 - 09:48 | 2838463 Metalredneck
Metalredneck's picture

Microwave based crowd control?


Coming to a bank near you...

Fri, 09/28/2012 - 08:53 | 2838207 Jason T
Jason T's picture

Trickle down?  The faucet has been diverted to bankers and apple shareholders.

Fri, 09/28/2012 - 08:54 | 2838209 q99x2
q99x2's picture

Ben's got the QE button reloaded and ready to go. No problem.

Fri, 09/28/2012 - 09:04 | 2838241 DormRoom
DormRoom's picture

Greenspan pushed down interest rates after the '01 recession, to boost the employment rate, causing bubbles.  Short term unemployment situtation was corrected, but it caused huge misallocation of resources over the medium term, causing a greater unemployment problem, after the financial collapse.  Now Bernanke has implemented QEternity to solve a short run problem, that in the medium term, could be more disastrous for the unemployed. Save a million jobs in the short run.  Lose 10M job in the medium run. Net Effect: #lostgeneration.

Fri, 09/28/2012 - 09:06 | 2838273 LawsofPhysics
LawsofPhysics's picture

Correct.  Greenspan really began the destruction of the backbone of capital markets in earnest through manipulation of interest rates and hence the pricing mechanism that capitalism is built upon.

But I digress, behind all this is the fact that the world is now facing zero growth in available energy yet more people are being born and still demanding a high standard of living.  Ain't gonna happen and the laws of physics and Nature really don't give a shit.  The planet will live on, same as it ever was.

Fri, 09/28/2012 - 11:01 | 2838894 Totentänzerlied
Totentänzerlied's picture

Or they could take it from us, like our ancestors took it from theirs.

Fri, 09/28/2012 - 08:57 | 2838210 LawsofPhysics
LawsofPhysics's picture

Wages matter.  There two ways that the "elites" steal.  Via taxation or inflation.  At least with taxes you can question the IRS or you local official and if properly managed the money can be spent on things we all use and need.

With inflation, the money is simply stolen, low man starves and civil war is the result.

Pick you poison sheeple or the Fed (a private bank) will pick it for you and they are clearly in favor of inflation.

Address the moral hazard already.  restore real consequences  for bad behavior at all levels of society.  Capital markets are dying as interest rates are now meaningless (ZIRP and NIRP, no surprise no one is "saving") so it may be too late already.

Hedge accordingly.

Fri, 09/28/2012 - 09:27 | 2838352 insanelysane
insanelysane's picture

The real measure of employment/unemployment is how much tax revenue is generated.  We can have 0 unemployment but if everyone is making min wage then tax revenue is negative due to earned income credits.

It's quality and quantity.

Fri, 09/28/2012 - 09:48 | 2838470 Chump
Chump's picture

My savings are in my shed, getting ready to plant some of my other savings once the weather gets a little bit cooler.

0.25% if I keep my paper with my bank.  roflmfaolololhahahabwahahaha.

Fri, 09/28/2012 - 08:54 | 2838211 youngman
youngman's picture

But they are still confidant...happy as clams....can´t figure that one out....

Fri, 09/28/2012 - 10:13 | 2838620 RSBriggs
RSBriggs's picture

Hey - Obama gunna bought me a cell and gunna pay my mortgage.  What's to worry bout?

Fri, 09/28/2012 - 08:54 | 2838213 the not so migh...
the not so mighty maximiza's picture

QE infinity was just to keep the banks open and fund the goverment.  They don't give a shit about anything else.

Fri, 09/28/2012 - 08:54 | 2838214 Jlmadyson
Jlmadyson's picture

Inflation baby.

Just what the Doctor ordered.

Fri, 09/28/2012 - 08:56 | 2838223 Perdogg
Perdogg's picture

Actually worse, stagflation "Welcome back Carter" to 1978. In 2012, 0bama is the new Carter.

Fri, 09/28/2012 - 08:59 | 2838235 LawsofPhysics
LawsofPhysics's picture

Even worse.  Look back again, how did we get out of the stagflation of the 70's?  We raised rates!!!!!!

Go ahead motherfucker, do that again, I double dog dare you.  Fucking bring it, bitchez...

Fri, 09/28/2012 - 09:07 | 2838278 j8h9
j8h9's picture

AND taxes! Reagan raises taxes 11 times in his two terms.

Fri, 09/28/2012 - 09:12 | 2838299 LawsofPhysics
LawsofPhysics's picture

Yes, also there was some significant wage inflation in the 70's.  What has the average wage done for ten years now? - FAIL.

Very, very, very different than the 70's and considerably more dangerous.  especially once the dollar dies.

Fri, 09/28/2012 - 09:25 | 2838344 GeezerGeek
GeezerGeek's picture

Somewhere around 1979 or 1980 the company for which I worked, a second-tier computer manufacturer (IBM was the first tier, all by itself), gave everyone a mid-year salary increase to make up for inflation. Now, annual wage cuts are more likely.

Fri, 09/28/2012 - 09:32 | 2838373 j0nx
j0nx's picture

Agreed. That's why I ROFL when people claim hyperinflation. Good luck passing that shit onto wages in a global arbitrage environment. Totally different from the 70's and MUCH worse. There is absolutely ZERO mechanism for wage increases in this country short of full out government collapse and by then it won't matter anyway and will be VERY short lived.

Fri, 09/28/2012 - 09:41 | 2838419 LawsofPhysics
LawsofPhysics's picture

You have been misinformed.  Hyperinflation does not require wages or the velocity of money to increase.  Ask yourself, what happens in a market when things go bidless or I refuse to even sell the commodities that I am producing because I simply decide to circle the wagons and save my own tribe.

Numerous examples of hyperinflation setting in without printing or increases in wage.  Ignore history at your own peril. 

Fri, 09/28/2012 - 09:22 | 2838333 GeezerGeek
GeezerGeek's picture

Back of the napkin: $16 trillion debt, 15% interest rates...$2.4 trillion per year increase in debt interest. Pretty soon we'll be talking about real money! Can Bernanke print fast enough to cover $2.4 trillion/year?

Fri, 09/28/2012 - 08:55 | 2838215 Cursive
Cursive's picture

Will 2013 be to Amerika what 1789 was to France?  Probably too dramatic of a comparison, but any reasonable person can see that we are digging a deeper economic hole every day.  I'm just here waiting for us to hit rock bottom and praying it won't be as bad as I fear.

Fri, 09/28/2012 - 09:05 | 2838265 Shizzmoney
Shizzmoney's picture

Americans have no where near the balls that the proletariat French did in those days, or what the Haitians did to the French (the only slave uprising I know of that actually worked in getting slaves true freedom from their oppressors - America still has slavery, it's just in zeros and ones now, as supposed to black and white).

We buy guns for defense, not offense. 

Plus, the oligarchy of our society has cut off the nuts of the people through institutionalized religion.  People are too afraid of imaginary things like Hell.  People, in nature, want to be good....yet support people who aren't.  Sort of like those who are the NFL referees a standing ovation.

People just don't seem to realize that the only way to get a bone out of a rapid dog's mouth is to cut his head off.

Bascially, America is currently one huge bowl of fucking stupid. And those who represent us in Congress, is proof of that.

Fri, 09/28/2012 - 09:10 | 2838289 LawsofPhysics
LawsofPhysics's picture

Cognative dissonance is a bitch.  FYI- the banks and financial houses own your "representation."

Something will give and America will go one of two ways; the way of France during the revolution or that which rises to power will make Hitler look like a sweet kindergarden teacher.


hedge accordingly.

Fri, 09/28/2012 - 09:15 | 2838308 insanelysane
insanelysane's picture

I think you need to research mob mentality.  It may be difficult to get going but once it goes, it goes bad.  See London riots...

Fri, 09/28/2012 - 09:20 | 2838321 LawsofPhysics
LawsofPhysics's picture

Wake us when the guillotines are actually put to use.  Londoners are the biggest sheep on the fucking planet.  they cue up better than any population I know.

Fri, 09/28/2012 - 09:27 | 2838356 CommunityStandard
CommunityStandard's picture

Japan queues better.

Fri, 09/28/2012 - 09:48 | 2838469 LawsofPhysics
LawsofPhysics's picture

fair point.

Fri, 09/28/2012 - 09:28 | 2838358 GeezerGeek
GeezerGeek's picture

We'll have to import those guillotines, since we don't manufacture anything any longer. Know where we can source some?

Fri, 09/28/2012 - 09:48 | 2838471 LawsofPhysics
LawsofPhysics's picture

Ha! (out loud)

Fri, 09/28/2012 - 10:16 | 2838636 RSBriggs
RSBriggs's picture

There are lots of bullets around.  Firing squads work pretty well.

Fri, 09/28/2012 - 10:35 | 2838744 Acet
Acet's picture

I can attest to that (since I live in London at the moment).

A rat-race of sad looking people, making up for their lack of a meaningful life with expensive consumer electronics and binge drinking on the weekends, holding on to a sense of superiority that solely relies on MSM propaganda, ignorance and the greatness of their ancestors rather than being based on actually having any risk taking, productive or creative abilities.

The most interesting bit is when I see people that never lived in any other big city outside the UK saying that London is the greatest city in the world - damn ignorant sheep. Whatever greatness this people and this city had seems to have disapeared, just like beautiful old buildings were razed to make way for gigantic, vaguelly phalus-like, glass towers.

Even the arts around here, with their huge tradition going back to Shakespeare times, have become this conformist, uncritical, meek shadow of their former selfs.

Good place to make money (while the going is still good), not a place were one would want to raise one's children in.

Fri, 09/28/2012 - 09:18 | 2838316 petolo
petolo's picture

........digging a deeper economic hole . Keep digging ; underground will be thr safest place to hide..No drones or tax collectors.

Fri, 09/28/2012 - 08:55 | 2838216 Perdogg
Perdogg's picture

0bama has completed the Jimmy Carter trilogy - Failure in Middle East, stagflation, and high unemployment.

Fri, 09/28/2012 - 09:00 | 2838236 MiltonFriedmans...
MiltonFriedmansNightmare's picture

Reminiscent of Groundhog Day, eh?

Fri, 09/28/2012 - 09:17 | 2838315 insanelysane
insanelysane's picture

I have said it before and I will say it again.  In '79 the only way to "survive" that was socially acceptable was to have a job so people voted for someone that could potentially get them a job.  This time is different.  Not only is it socially acceptable to not have a job but in some urban environments it is socially unacceptable to actually have a job.

Fri, 09/28/2012 - 10:42 | 2838793 LawsofPhysics
LawsofPhysics's picture

Nature is re-asserting herself.  No job will mean no food shortly.  I don't worry about urban fucking sheep, they will destroy themselves.

Fri, 09/28/2012 - 09:19 | 2838320 blindfaith
blindfaith's picture

Please with the rewrite of history, a little study on your part would not hurt.  Carter inherited a mess, Obama inherited as bigger mess.  You can deny, pretent, claim otherwise, but the facts are there.  There is enough disinformation floating around the sewers now, without adding to it.

As always, Republicians make a mess and then blame Democrats for not cleaning it up fast enough.

Fri, 09/28/2012 - 09:32 | 2838379 insanelysane
insanelysane's picture


You just wrote it, yet YOU DON'T UNDERSTAND IT!

The government, Repub or Dem, is made up of politicians and not of people that actually know something about anything.  The mess just gets compounded.  Repubs do something not good, then Dems come in and fix it, and then Repubs come in and fix that, and then Dems....


We need lean government where someone actually asks the question "why are we doing this" at least 5 times to see if the government should really be doing this.

Fri, 09/28/2012 - 09:46 | 2838458 GeezerGeek
GeezerGeek's picture

Your moniker says it all. Blind faith. Kool aid drinker, no doubt.

Which party, after all, controlled Congress prior to Carter taking office? Democrats. Which party passed the Community Redevelopment Act? Democrats. Which party insisted that banks make subprime loans so the poor could have ATMs disguised as houses? Democrats. Which party took complete control of Congress a year before the crash in late 2007? Democrats. Which party passed the huge TARP bailouts and subsequent wildly unbalanced budgets? Democrats.

This is not to say Republicans aren't capable of being just as reckless when they have power, either Congressional or presidential. Bush II was a disaster in so many ways, giving us more Federal intrusion into education (colluded with Ted Kennedy, Democrat), Medicare drugs plans (bipartisan, under leadership of Denny Hastert, Republican), Patriot Act (formulated during Clinton administration, I believe), invasion of Afghanistan (at least Clinton only lobbed cruise missiles into Afghanistan), Iraq (bipartisan agreement to remove WMDs, and George was pissed that Saddam had gone after his daddy)...

Your statement about Republicans making messes is like saying Democrats are the ones that get us into wars.

Fri, 09/28/2012 - 09:51 | 2838485 LawsofPhysics
LawsofPhysics's picture

"Which party passed the huge TARP bailouts and subsequent wildly unbalanced budgets? Democrats."


George Bush had the opportunity to veto TARP, what the fuck happened?

Please, you are both morons.  Stop with the left right bullshit.  There is only one party, for the banks and financial houses, by the banks and financial houses.  Please, wake the fuck up.

Fri, 09/28/2012 - 10:18 | 2838646 RSBriggs
RSBriggs's picture

What was the unemployment rate when Bush left office again?  How much was the national debt.  I have news for you, the economy was doing reasonably well when Bush left office.  But libs are NEVER responsible for ANYTHING are they?  Fuck off, irresponsible, liberal asshole.

Fri, 09/28/2012 - 10:43 | 2838784 LawsofPhysics
LawsofPhysics's picture

Yes, doing so "well" that Bush had to sign TARP and "save the world".   How fucking dumb are you?  Stop with the left/right bullshit, there is only one party, for the banks and financial houses by the banks and financial houses.

Thanks for showing everyone your ignorance you dumb fuck.

Fri, 09/28/2012 - 10:53 | 2838844 barroter
barroter's picture

Yeah...let's try more deregulation. We need a much larger shawdow banking system w/o any oversight whatsoever....that'll save us all!


Fri, 09/28/2012 - 08:57 | 2838224 Shizzmoney
Shizzmoney's picture

Don't worry, guys! "The jobs are coming!"

The new middle class trap: 'I'm working really hard, but I'm not getting ahead'

College has become the golden ticket off that hamster wheel. But this, too, has widened the demographic gap in upward mobility. Lower-income children typically struggle to keep up in school, falling well behind wealthier children on K-12 test scores, which hurts their chances of getting into college and earning a diploma. A student with high scores on eighth-grade standardized tests but whose family is poor (in the lowest-income quartile) had only a 29 percent chance of finishing college, the EPI study found. That was a lower chance than a student from the top of the income ladder with low test scores.  

In other words, a dumb, rich kid is more likely to get a college diploma than a smart, poor kid.

But hey, as long as the gas keeps rising, as it did in August, we can just keep smashing these personal spending numbers!


Fri, 09/28/2012 - 09:00 | 2838239 LawsofPhysics
LawsofPhysics's picture

I'd argue that college is the ticket to a guarranteed spot on the hamster wheel.  What do I know, just a simple farmer.

Fri, 09/28/2012 - 09:12 | 2838298 Shizzmoney
Shizzmoney's picture

I'd argue that college is the ticket to a guarranteed spot on the hamster wheel.

And the majroity of us can't even afford the fares!

Fri, 09/28/2012 - 09:21 | 2838306 LawsofPhysics
LawsofPhysics's picture

What are you talking about, I see dumb shits taking out tons of loans that they never intend to pay back.  Don't hate the players, change the fucking game.  These kids are actually smart enough to take the "free money".  The education is fucking real, the will never give the knowledge back.  Please wake the fuck up.  The fundamental issue that fixes everything is the issue of moral hazard.  Fix that, and everything else fixes itself.  Think about it, if a kid starts to think; What's that?  If I commit fraud I am executed? oh shit, I better not do that.

Fri, 09/28/2012 - 09:43 | 2838438 RiverRoad
RiverRoad's picture

Good luck even getting on the hamster wheel.  College is the ticket to a waitressing job.

Fri, 09/28/2012 - 14:03 | 2839532 Anusocracy
Anusocracy's picture

Oh God, now I have to change my sex to get a job.

Fri, 09/28/2012 - 08:59 | 2838232 nbsharma
nbsharma's picture

One problem though: real disposable income is significantly high than 2009 lows. The trend needs to be looked over a 3-year and 5-year period; in the short term, it seems like a warning, but tough to predict yet, how dire it is.

Fri, 09/28/2012 - 09:04 | 2838255 Jlmadyson
Jlmadyson's picture

Can someone explain to me how this works when median household income has continued to fall and even more so after the so called end of the recession?

All I can think of is some households have got their books in order?

Disposable income must come from some area of shadow if median continues to fall.

Fri, 09/28/2012 - 09:09 | 2838287 blindfaith
blindfaith's picture

Easy.... Imaginary numbers don't lie.


Fri, 09/28/2012 - 09:21 | 2838328 insanelysane
insanelysane's picture

As I wrote the other day, this guy at work had his wife yell at him for not paying the cell phone bills with a credit card because when she went to use the debit card there was no money.  People are using credit cards for groceries, fuel, and other bills leaving them "flush" with disposable income.

Fri, 09/28/2012 - 08:59 | 2838234 azzhatter
azzhatter's picture

Let's see Ben the cocksucker unleashes inflation as consumer incomes are falling. Yes, that should work.

Fri, 09/28/2012 - 09:01 | 2838244 RSloane
RSloane's picture

Savers are being punished and consumers are being punished. This is what inflation does. We are told constantly that savers are bad. We are told constantly that consumers are not doing their part. Its all the people's fault. Starting to feel Spanish yet?

Fri, 09/28/2012 - 10:54 | 2838851 barroter
barroter's picture

Do your part! Re-fi that house and blow it all on a cruise! 

Fri, 09/28/2012 - 09:03 | 2838252 Dr. Engali
Dr. Engali's picture

 Why do I need to make any money when Obama will give me everything I want? I may drop my current phone plan and get me an Obama phone.


Fri, 09/28/2012 - 09:05 | 2838268 azzhatter
azzhatter's picture

any chance obama could get her a hearing aid?

Fri, 09/28/2012 - 09:04 | 2838257 azzhatter
azzhatter's picture

Savers are being punished because they won't spend. Govt wants debt serfs. People with money become more independent. Can't have that

Fri, 09/28/2012 - 10:55 | 2838856 barroter
barroter's picture

If you save enough, you can tell the company you work for to go f themselves hard...

Fri, 09/28/2012 - 09:04 | 2838263 blindfaith
blindfaith's picture

" our operations were a sucess, but unfortunately America died anyway"

Taken from speech by Mr. Ben Bernanki upon his retirement from the Chairmanship of the US Federal Reserve, as delivered to the US Chamber of Commerce, January 13th, 2014.

Fri, 09/28/2012 - 09:50 | 2838482 GeezerGeek
GeezerGeek's picture

Unspoken meaning: "our operations were a success; America died."

Fri, 09/28/2012 - 09:05 | 2838266 yogibear
yogibear's picture

For Bernanke and the current bunch of Fed Keynesian PhD zombies QE and printing solves everything.  

Later,  this group of PhDs won't be able to pull the stimulus out of the system once inflation is out of control in fear of crashing the economy.

You can see it coming, but the Fed isn't worried because it's not a problem to them now.

Watch for government and the Fed hide inflation. 

Fri, 09/28/2012 - 09:07 | 2838275 azzhatter
azzhatter's picture

that's not inflation, it's just rising prices for better quality says Ben the cocksucker

Fri, 09/28/2012 - 09:46 | 2838459 RiverRoad
RiverRoad's picture

It'll be no problem for Bernanke.  He'll be long gone and happily retired when inflation finally takes hold.

Fri, 09/28/2012 - 09:44 | 2838445 Chump
Chump's picture

Later?  We're already there buddy.

Fri, 09/28/2012 - 09:10 | 2838293 Oldballplayer
Oldballplayer's picture

My savings rate is higher.  But they cannot measure it because its buried in a plastic tube somewhere.

Fri, 09/28/2012 - 09:27 | 2838353 LawsofPhysics
LawsofPhysics's picture

Good man (or woman- sorry, still trying to get use to PC).

Fri, 09/28/2012 - 11:09 | 2838942 kekekekekekeke
kekekekekekeke's picture

good move would have been 1 more keystroke... but then you wouldn't have gotten to be so dramatic about how not everyone on the internet is a man

Fri, 09/28/2012 - 09:10 | 2838294 Jlmadyson
Jlmadyson's picture

So high gasoline/inflation accounted for .4 of the .5 on the consumer spending.

Nice Dr Benny.

Love the Reuters headline. High Gasoline Lifts Consumer Spending in August.

Yea it lifts it alright.

Fri, 09/28/2012 - 09:19 | 2838319 The Alarmist
The Alarmist's picture

Aren't we getting tired of reading phrases like "Bernanke knew what he was doing when he launched QE3."

The correct formulation would be along the lines of "Bernanke knew something needed to be done ..." which very well could be followed with " ..., but in launching QE3 he demonstrated once again his penchant for choosing the exact wrong strategies to deal with the problem."

The Bernank studied the 1930's and is an expert on the Great Depression ... all that qualifies him for, IMHO, is to know what needs to be done to prolong an even Greater Depression.

Fri, 09/28/2012 - 09:19 | 2838322 youngman
youngman's picture

I also think a small part of the population is going Greece and soon Spain...oooh ...and add in France books...all cash...

Fri, 09/28/2012 - 09:20 | 2838325 irie1029
irie1029's picture

Yeah well so what.  I gots me a free cell phone.

Fri, 09/28/2012 - 09:25 | 2838343 ziggy59
ziggy59's picture

Ahhh.. The Goldlilocks economy.. Almost just right.


Fri, 09/28/2012 - 09:25 | 2838345 j0nx
j0nx's picture

Kinda hard to save when the cost of food, gas and utilities are doubling every 3 years. But keep voting for the same old CONgress fucktards and Obama suckers. Americans are fucking retards. So easy to manipulate and scam 90% of them. If my dad didn't instill such a sense of right and wrong and honor into me then it would be easy fucking pickens to steal the lot of them blind and have them thanking me for it afterwards.

Fri, 09/28/2012 - 10:21 | 2838430 WhiteNight123129
WhiteNight123129's picture

Ooops, the savings indicates that people are borrowing for basic expenses, that is the road to scratch the bottom kaboom hyperinflation unless the Rich and corporations spend very quickly, which seems unlikely given that they are frozen watching the Europeans fuck-up with austerity.... The French Gov is taxing corporations to reduce teh deficit, they should tax them only if they sit on idle net cash. That would make sense, it would be like> If you spend your cash I don t tax (it would boost up circulation and mechanically wages), if you hoard your cash I wack you with prohibitive taxes. What do you think corporations would do? Spend and you pull the economy out of hte funk.

You would give a break to corporations which are already levered-up and not increase their tax rates, but if they borrow too much the tax rate would increase again very slightly (just symbolically to discourage overleverage). It is a crude tool, but essentially you would have very high tax rates on idle cash, lower tax rates for corporations with reasonable leverage and no more benefits at a certain level of leverage and signal that excessive leverage will not be rewarded (to avoid bad behavior ).


Evidently economists think that Keynes apply only to Government, it applies to whomever has idle resources that could be deployed to get out of the funk. Sometimes it is the Gov (in 1933) today it is the Rich and Corporations. The Fed is trying to tax with the printing press. Do not blame them. THe system is fiat because people had the idiocy to use monomettalic system instead of bimettalic and had the idiocy to think that a fixed level of paper to Gold was a good idea to prevent banking busts. The reason we have fiat is because people do not want to accept the inevitable busts coming with a mettalic regime and for some reason wanted to manipulate teh currency with a monomettalic system. THe West should have left the system the way it was before 1844 Bank of England Charter, leaving bank of issues free to issue bank notes (banks of issues) and leave deposits and bank of issues bank under the same roof.




Fri, 09/28/2012 - 10:58 | 2838879 barroter
barroter's picture

"watching the Europeans fuck-up with austerity"

Might be fun watching them try to sell austerity to the people here....

Fri, 09/28/2012 - 09:46 | 2838454 Perdogg
Perdogg's picture

Please explain to me how funneling stimulus money to the political bundlers at Solyndra was an attempt "to clean up" Bush's mess? This should be good.

Fri, 09/28/2012 - 12:08 | 2839176 WhiteNight123129
WhiteNight123129's picture

basic arithmetic. In 1982, teh cost of a solar panel was 27 USD, in 2007 about 4 USD and today about 1 USD.

Ok here is teh simple question> Is it arithmetically possible to have ever increasing price of oil and and ever decreasing cost of solar panel AND have solar panels as a whole industry fail. Please answer by YES or NO.

Once you have answered this question, check your own opinion about a particular technology, the question just asked before should be illuminating about your opinion vis a vis a particular technology.


Fri, 09/28/2012 - 15:36 | 2839835 Red Raspberry
Red Raspberry's picture

Trying to keep the banks form getting all the spoils.

Fri, 09/28/2012 - 09:56 | 2838513 Theosebes Goodfellow
Theosebes Goodfellow's picture

I wonder what percentage of people who instead of placing their savings with a bank are putting them in PMs.

Fri, 09/28/2012 - 11:10 | 2838944 kekekekekekeke
kekekekekekeke's picture

I would say 2% at most 

Fri, 09/28/2012 - 10:38 | 2838761 Grand Supercycle
Grand Supercycle's picture


Longs please be careful.

Due to recent central bank intervention and short covering spikes, these daily charts are extremely overextended and significant correction expected very soon:


Fri, 09/28/2012 - 11:08 | 2838932 Snakeeyes
Snakeeyes's picture

Savings rate falls, durable goods orders crash, Americans living on student loans and gutting their savings. Wow.

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