US Savings Rate Near Record Low, Per Capita Disposable Income Almost Back To December 2006 Level

Tyler Durden's picture

There was some good news for headline scanning algos this morning, when both personal incomes and spending came in modestly higher than expected, with incomes rising 1.1% compared to an estimated 0.8% increase, while spending was up 0.7%, also higher than the 0.6% expected. But while the superficial headline grab did indicate a modestly better climate for both spending and incomes, it was a look under the cover once again that revealed the full extent of the pain that US consumers continue to find themselves in, over 5 years since the start of the second great depression.

First, the bulk of the bounce in spending was driven by a surge in Non-Durable Goods, which rose by $48.5 billion in one month, and amounting to 61% of the total increase in personal outlays in February. This was the biggest monthly jump since the onset of the financial crisis: hardly inspiring much confidence for those companies which are wondering whether to ramp up capital expenditures and spending, especially since spending on Durable Goods declined by $400 million in February: a drop in discretionary spending due to the payroll tax cut. As Nomura explained, higher energy prices main reason for rise in spending last month. Gasoline, other energy goods consumption +8.07% in Feb., drove non-durable consumption up 1.88%; services spending gain driven by utilities, also reflects higher energy prices.

Second, while incomes did rebound after the plunge in January, the modest increase represented a rise in the personal savings rate to just 2.6% - the second lowest monthly savings print since 2007, excluding only the abysmal January 2.2% print. In other words, there is hardly much if any new room for additional spending with the savings rate nearly at record lows, and with US consumer continuing to reduce their outstanding revolving credit, the Q1 retail sales miracle will hardly be repeated in future months as US consumers seek to rebuild some cash buffer.

For those claiming there is something called a "recovery" underway, perhaps they can point out just where on this chart of Real Disposable Income per capita one can find said recovery. Because we are confused: with the average Real Disposable Income of $32,663 per person, or lower than where it was in December 2006 ($32,729), one may be excused for scratching their head.

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Jason T's picture

those are the first two items i checked as well... Bernanke started in December of 2006 .. his legacy will be he destroyed real per capita income.  Greatest inflation record of any fed chair.. give me a break.

SheepDog-One's picture

Remember when they're discussing 'Bank Liabilities' they're talking about 'customer deposits, savings accounts, CD's and MM funds' first and foremost according to the Palgrave economic dictionary.

Urban Redneck's picture

What is sad is that the people weren't sheeple- PSAVERT would still be collapsing, but instead because savers would be pulling their money from banks and going to the mattresses.  But no, their dutifully lining up for the sheeple shearing by uncle Sam and uncle Ben, like a bunch of uncle Toms...

Careless Whisper's picture

The Careless Whisper MORE SANDY HOOK LIES UPDATE & Threadjacking

The Media has been reporting that Nancy Lanza gave Adam Lanza a Christmas Card with a check in it to buy himself a gun, (sans permit). This story came DIRECTLY from the CT State Police. The Christmas card and check were listed as part of the inventory gathered as a result of a Search & Seizure Warrant of the residence. Oh, BTW, what specifically wasn't found in the Lanza residnce was Cash, "None" to be exact. Back to the gun money. This is from the CT State Police; "Exhibit #612 - One (1) holiday card containing a Bank of America check #462 made out to Adam Lanza for the purchase of a C183 (Firearm), authored by Nancy Lanza." Never heard of that firearm, so I did a little research. Found an owner who gave a review: "...good outdoor shots... blown up nicely..."  Starting to sound bad ass. Except the full name of the C183 is "Kodak EasyShare C183". Yes, it's a camera.  

The next Sandy Hook lie comes off the pages of a sworn Affidavit submitted to the Judge in order to obtain a Search & Seizure Warrant for the Honda Civic. (They wanted fibers, hairs, finger prints, etc,. except they didn't bother to get any of that). From the Affidavit from two Detectives with 43 combined years experience with CT State Po: "4. A shotgun was noted in plain view to be in the interior of the vehicle."    Oh really.

And from the Affidavit to get the Search Warrant for the residence: "5. ...numerous school children and school personnel were located deceased from apparent gun shot wounds..."    "Numerous"? Perhaps that's better than getting locked in to a number.

Lastly, why hasn't the Coroner released the autopsy and toxicology reports? What were the medications? Is the Coroner being threatened to withhold the report? or to alter the contents?

https://www.documentcloud.org/documents/628233-search-warrant-dated-dece...

https://www.documentcloud.org/documents/628231-search-warrant-dated-dece...

https://www.documentcloud.org/documents/628232-search-warrant-dated-dece...

https://www.documentcloud.org/documents/628230-search-warrant-dated-dece...

https://www.documentcloud.org/documents/628229-search-warrant-dated-dece...

 

 

 

TrumpXVI's picture

Yeah, and the bullshit reporting on the evening news last night about, "the VAST arsenal of weapons".  The "vast arsenal" was comprised of a few firearms; a few rifles, a shotgun a few handguns and ONE THOUSAND ROUNDS of ammunition.

Give me a break.  

SMALL firearms collections here in PA may include as many as fifty weapons.

Any avid target shooter likely has tens of thousands of rounds of ammunition on hand at any time.

One of my friends owns hundreds of weapons.

SheepDog-One's picture

Hell I have a thousand rounds in just sub-groups of ammo, such as 1,000 00buckshot, 1,000 1 oz slugs, 1,000 BB shot, etc.

de3de8's picture

Trump, yeah, if that's an arsenal then I have a depot.

GeezerGeek's picture

If each serious gun owner (how many fit into this category?) has more than 1000 rounds, maybe the DHS will need more than it's meager stash of less than 2 billion. If 15 million gun owners have 1500 rounds each, that equates to 22,500,000,000. Holy batshit, Batman! That represents quite a pile of dough.

Maybe that explains all the armored vehicles, too. 

Muddy1's picture

BULLISH, NO, just more insider transactions like the Russians and Brits did in Cyprus.  This is more like: BANK RUN BITCHEZ here in the US by those in the know.

Creepy Lurker's picture

That was the first thing ran through my mind too, Muddy. How many folks who read ZH (or something like it) are quietly emptying their accounts over the next few weeks? And surge in non-durable goods sounds a little like putting the finishing touches on preps, yes?

Kaiser Sousa's picture

i jumped in here cause i thought this deserves ZH'ers attention...Tylers can we get some digging on this????? it appears they got plans for all those with their debt coupon dollars in the ZomBanks...

"The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.”  It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state:

http://s0.wp.com/wp-content/themes/pub/digg3/images/bg_blockquote.gif); background-color: #fffada; color: #736926; font-family: Arial, Helvetica, Georgia, sans-serif; font-size: 12px; line-height: 18px; background-position: 5px 7px; background-repeat: no-repeat no-repeat;">

An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.

No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks.  The directive is called a “resolution process,” defined elsewhere as a plan that “would be triggered in the event of the failure of an insurer . . . .” The only  mention of “insured deposits” is in connection with existing UK legislation, which the FDIC-BOE directive goes on to say is inadequate, implying that it needs to be modified or overridden."

http://webofdebt.wordpress.com/2013/03/28/it-can-happen-here-the-confisc...

Muddy1's picture

"It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.”"

Here's is what the Canadians are planning, (clearly it's been months in the planning so Cyprus and the EU were NOT the sudden victims of a crazy scheme):

http://theeconomiccollapseblog.com/archives/cyprus-style-bank-account-confiscation-is-in-the-new-canadian-government-budget

Link to the bugetary document, "Econimic Action Plan" see pages 144 and 145.  http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf

In a nutshell,

"The Government also recognizes the need to manage the risks associated with systemically important banks — those banks whose distress or failure could cause a disruption to the financial system and, in turn, negative impacts on the economy.  This requires strong prudential oversight and a robust set of options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable."

MORE:

"The Government proposes to implement a "bail-in" regime for systemically important banks.This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital.  This will reduce risks for taxpayers.  The Government will consult stakeholders on how best to implement a bail-in regime in Canada.  Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants." 

macholatte's picture

 

(clearly it's been months in the planning so Cyprus and the EU were NOT the sudden victims of a crazy scheme):

 

perhaps Cyprus was just a beta test.

Kaiser Sousa's picture

i jumped in here cause i thought this deserves ZH'ers attention...Tylers can we get some digging on this????? it appears they got plans for all those with their debt coupon dollars in the ZomBanks...

"The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.”  It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state:

http://s0.wp.com/wp-content/themes/pub/digg3/images/bg_blockquote.gif); background-color: #fffada; color: #736926; font-family: Arial, Helvetica, Georgia, sans-serif; font-size: 12px; line-height: 18px; background-position: 5px 7px; background-repeat: no-repeat no-repeat;">

An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.

No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks.  The directive is called a “resolution process,” defined elsewhere as a plan that “would be triggered in the event of the failure of an insurer . . . .” The only  mention of “insured deposits” is in connection with existing UK legislation, which the FDIC-BOE directive goes on to say is inadequate, implying that it needs to be modified or overridden."

http://webofdebt.wordpress.com/2013/03/28/it-can-happen-here-the-confisc...

HD's picture

Interesting, but I wouldn't concern myself too much.

It doesn't matter if the deposits are "insured" or not. FDIC does not have the ability to backstop a financial collapse or anything even close.

 

Kaiser Sousa's picture

agreed...it's something we can disseminate amongst the sheeple herd though...

as Normalcy Bias is a plague upon the dead republic.....

HD's picture

You're a better man than I. 

I've given up trying to explain anything to anyone. Any time I talk about the manipulation and corruption in the financial system people just tune out - they honestly think I'm concerned over nothing.

dark pools of soros's picture

as a reminder...

 

 

Risk

The Contracts and securities purchased for the fund are backed solely by the financial resources of the issuers of such Contracts and securities and are subject to the creditworthiness of the issuer. An investment in the fund is not insured or guaranteed by the manager(s), the plan sponsor, the trustee, the FDIC, or any other government agency. The Contracts purchased by the fund permit the fund to account for the fixed income securities at book value (principal plus interest accrued to date). Through the use of book value accounting, there is no immediate recognition of investment gains and losses on the fund's securities. Instead, gains and losses are recognized over time by periodically adjusting the interest rate credited to the fund under the Contracts. However, while the fund seeks to preserve your principal investment, it is possible to lose money by investing in this fund. The Contracts provide for the payment of certain withdrawals and exchanges at book value during the terms of the Contracts. In order to maintain the Contract issuers' promise to pay such withdrawals and exchanges at book value, the Contracts subject the fund and its participants to certain restrictions. For example, withdrawals prompted by certain events (e.g., layoffs, early retirement windows, spin-offs, sale of a division, facility closings, plan terminations, partial plan terminations, changes in laws or regulations) may be paid at the market value of the fund's securities, which may be less than your book value balance.

 


Who May Want To Invest

Someone who seeks a slightly higher yield over the long term than is offered by money market funds, but who is willing to accept slightly more investment risk.

Someone who is interested in balancing an aggressive portfolio with an investment that seeks to provide stability of price.

 

 

Kaiser Sousa's picture

double post was due to computer glitch...apologies

and fuck off to the one who reded me...

camaro68ss's picture

so if you increase taxes, savings go down, (gasp) 'shocking'

SheepDog-One's picture

Hmmmm...so if you bankrupt everyone, their savings go down? Yes we'll have to remember that.

Sudden Debt's picture

not according to Krugman... or CNBC... or OBarry...

dark pools of soros's picture

Is there a cap on the future?  Even if the world ends in 1000 years we can still spend money from the next 5000 years today!

DaveyJones's picture

WSJ: "North Korea Warned"...that we might go bankrupt

Sudden Debt's picture

Spanish PM Rajoy is BEGGING the EU dictators to increase his Spanish deficit from 4,5% TO 6%!!

and how do you bankrupt the West in total?!!

LOOK AT THE GOLD CHART TODAY!!!!! COMPAIR IT TO YESTERDAYS GRAPH!! WEIRD OR WHAT?!!

http://www.kitco.com/charts/livegold.html

 

Citxmech's picture

I've been watching Kitco's charts for years almost daily, and I don't think I've ever seen such perfect "square waves" in succession.  That is very weird.

Sudden Debt's picture

ou can say that again. Never seen it either, fucking weird stuff.

DaveyJones's picture

think it goes with all the other fucking weird stuff

ParkAveFlasher's picture

Didn't see this comment thread before I posted same below .. my apologies.

And it's still moving. 

So there's a market populated by people buying and selling that is moving prices, or do prices just move themselves nowadays? 

salvadordaly's picture

Weird, I recieved 2 calls from the bank today. Some kind of debit card fraud alert, they are sending me a new card. All this from a computer generated message. Check the account and all seems well. I wonder if something is going on behind the scenes. You know, screen on computer shows all good, but behind the scenes the govbment is raiding my pockets. Would be a great weekend for SHTF. Every body is destracted. I'm just saying.......

Temporalist's picture

Jesus Saves (just not from those doing "god's work")

robertocarlos's picture

A nice lady gave  me  a Gideon Bible yesterday an I am getting the Watchtower in the mail now so something is up or I look like I need help.

tango's picture

Salvadordaly,  

No conspiracy or nefarious doings.   Someone broke into a databank of a shop where your card was once used.   Happens all the time and when it does I have to go through a long list of folks paid automatically with the credit card and update the new number.  It has nothing to do with your account. 

de3de8's picture

Camaro68ss
Not in nobama world
BTW, did you catch the new Z/28 reveal?

TeamDepends's picture

What is the price of silver right now?  Has this become a rhetorical question?

ParkAveFlasher's picture

Do algos take Good Friday off?  Gold and silver doing right angles today.  Not even making look like a market.

fuu's picture

The Kitco silver chart looks very etch-a-sketchish today.

Kaiser Sousa's picture

no worries chap...

just effecient, free, and fair markets at work in merry old "Dog meat in the CurryTown" London....

edb5s's picture

LOL.  It looks like silver "flatlined" today.  Right angle up to a flat plateau yesterday and now right angle down to a flat line today.  Never seen them like this.  Just another day in the life of a rigged, centrally-planned economy.

TeamDepends's picture

So who gets to "assume the position" Monday morning?  These are exciting times.

ParkAveFlasher's picture

Per Silver Doctors:

Per the CME the Globex is closed the 28th-31st, and per the HKMEx Hong Kong is also closed Friday the 29th

That's nice.  So...who's trading right now, who's logging prices on which exchange, and why are the (likely) RSS feeds showing movement in price on the kitco widgets?

TeamDepends's picture

The Shadow knows....  cue creepy music and maniacal laughter

1100-TACTICAL-12's picture

My boots are full of piss, and they keep telling me it's water with unicorn sprinkles.

Sudden Debt's picture

well... on Ebay there's a buyer for everything...

Silver Bug's picture

Don't worry mon! A new credit card is in the mail!

 

http://sprottmoneyblog.com/

max2205's picture

Ahem, who has 32k of wallet money?