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Guest Post: Personal Income And Spending Weigh On Economic Recovery Hopes

Tyler Durden's picture




 

Via Lance Roberts of Street Talk Live,

 

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Sun, 12/02/2012 - 12:37 | 3028103 Shizzmoney
Shizzmoney's picture

Without a recovery in incomes/benefits....you can't have a recovery. It's simple math.

Which is why we don't have one right now, despite what the Democratic party tells you.

I find with dispicable hilarity that conservative neo-classical economists, and economists on the left, are telling me that things are getting better. 

Yet again, if I got paid $10K, $20K, $40K every time I spoke, I'd think we would be "recovering", as well.

Sun, 12/02/2012 - 13:30 | 3028153 Samsonov
Samsonov's picture

To be fair, the Democrats aren't actually saying we're in a recovery; they constantly hedge their comments with weasel words, such as, "on the path" to recovery.  Seems like a quibble, granted, but when those whose asses depend on recovery shy away from directly stating it, it's telling.

Come to think of it, except for Jim Cramer, is anyone prominent explicitly stating that we are in recovery?

Sun, 12/02/2012 - 13:31 | 3028160 stocktivity
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To be fair, It's all Bullshit!!!

Sun, 12/02/2012 - 16:04 | 3028311 hooligan2009
hooligan2009's picture

delete "prominent" and insert "highly paid talking head" there FIFY..politics reminds me of that South Park episode where Stan is told all elections are a choice between a douche bag and a shit sandwich.

Sun, 12/02/2012 - 16:08 | 3028319 sessinpo
sessinpo's picture

How selective and short your memory is. We have had several "summers of recovery" Do I really need to bring up the quotes. And those comments weren't hedged.

Sun, 12/02/2012 - 13:45 | 3028176 Silver Bug
Silver Bug's picture

What recovery? We are in a Depression.

 

http://dr-marc-faber.blogspot.ca/

Sun, 12/02/2012 - 12:42 | 3028109 Rainman
Rainman's picture

How did personal interest income make such a jump in a world of ZIRP and NIRP ..? ( scratches hole in head )

Sun, 12/02/2012 - 14:10 | 3028197 Bad Attitude
Bad Attitude's picture

Why is personal interest income up? Because people have temporarily parked money in their bank accounts. People are closing out investments subject to capital gains before the end of the year and restructuring other income-producing transactions (e.g. bonuses) before the end of the year so as to avoid the substantially higher tax rates coming next year. So, all that money is sitting in bank accounts drawing interest.

Once people figure out what Dear Leader is going to do next to screw up the US economy, that money will disappear from bank accounts as it is moved into wealth preserving investments/assets.

Sun, 12/02/2012 - 16:02 | 3028306 hooligan2009
hooligan2009's picture

i'm guessing its coupon payments..with a fault in the data reporting six monthly receipts rather than accruals.

doesnt matter how much you park at zero nterest, you just get...zero interest

Sun, 12/02/2012 - 13:14 | 3028140 algol_dog
Sun, 12/02/2012 - 13:20 | 3028145 knukles
knukles's picture

Duh...

Sun, 12/02/2012 - 13:23 | 3028147 caimen garou
caimen garou's picture

so my forced early retirement that started 2009 "WAS" sandys fault? and I guess all thoes employment apps got sucked into a black hole and yes, my dog must have ate my medical bills that I could'nt pay!

Sun, 12/02/2012 - 13:57 | 3028186 Samsonov
Samsonov's picture

No, that was Katrina's fault.  Or Bush's.  I get mixed up.

Mon, 12/03/2012 - 08:55 | 3028158 SilverDOG
SilverDOG's picture

If one had cashed out of 401k, IRA, and any other paper ponzi,

and graduated to possessionis 9/10ths of the law.

You would be experiencing recovery, or at least preservation.

Buy and hold the metals, or die of a thousand paper cuts.

Sun, 12/02/2012 - 13:36 | 3028164 Sextus Empiricus
Sextus Empiricus's picture

In the last 10 years, the median household salary in America has gone up about $8,000.  Adjusted for inflation, it's actually decreased.

Meanwhile, the average pay for a member of Congress has gone up about $30,000 dollars.

Sun, 12/02/2012 - 13:39 | 3028166 Mad Muppet
Mad Muppet's picture

That seems mildly guarded...whose inflation data was used to do the calculations? I'd like to see it regraphed with the numbers coming from Shadow stats and see it it looked as good.

Sun, 12/02/2012 - 13:40 | 3028170 Sextus Empiricus
Sextus Empiricus's picture

Census Bureau... for what it's worth.

Sun, 12/02/2012 - 14:21 | 3028207 A Nanny Moose
A Nanny Moose's picture

Is it just me, or does the price of used cars seem to be going up? How much personal income growth is required to counteract that?

Sun, 12/02/2012 - 14:34 | 3028222 Northern Lights
Northern Lights's picture

Another part of the reason the prices are going up is because they're better made, from stronger materials, as well there's so much more expensive technology in these cars too.  

Sun, 12/02/2012 - 16:11 | 3028329 sessinpo
sessinpo's picture

Almost anything in the secondar retail market is going up. People are having a harder time affording brand new items, thus they are driving the used market up. Same goes for rent in real estate. But evenually that all crashes when no one can afford anything or pay taxes on it.

Sun, 12/02/2012 - 15:07 | 3028248 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

On the road to  ... perdition.

Sun, 12/02/2012 - 16:36 | 3028359 The Alarmist
The Alarmist's picture

We used to have recoveries. Then we started having jobless recoveries. It's only natural that we've progressed to growthless recoveries.

Forward!

Mon, 12/03/2012 - 01:39 | 3028977 Stuck on Zero
Stuck on Zero's picture

Not everyone is suffering.  Those lifeguards in Orange County who earn $200K a year are getting a brand new lifeguard station at the little tiny beach in Laguna Beach.  Not your little 2x4 nailed up seat for the lifeguard to sit on anymore.  No, they get a $5.6 million dollar lifeguard tower on the most expensive proerty on the West Coast. Nothing but the best for government employees.

 

http://lagunabeach.patch.com/articles/extreme-makeover-laguna-edition-ne...

 

Mon, 12/03/2012 - 08:07 | 3029177 NidStyles
NidStyles's picture

I'm convinced Baywatch was a proganda show from the onset.

Mon, 12/03/2012 - 10:36 | 3029476 Ivanovich
Ivanovich's picture

Actually, "hope" as an investment strategy has worked out well these past four years.  That's why we're all pissed about it.

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