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Euro Area Savings Rate Drops To Record Low, Disposable Income Has Biggest Drop Ever

Tyler Durden's picture




 

A month it was the US which saw its savings rate plummet to the lowest since the start of the Second Great Depression...

And now it is the Euro Area's turn to see its savings crumble to 12.2% in Q4 2012, from 12.8% previously, the lowest in, well, ever, since the adoption of the Euro:

Why? Gross disposable income just imploded, dropping at the lowest "growth" rate ever. Notably, wages were a far bigger detractor to income than taxes.

And the same on a per capita basis. Bloodbath:

We know: austerity's fault (just ignore absolutely everything else that is broken in Europe). See how easy that was?

Source: Eurostat

 

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Mon, 04/29/2013 - 07:59 | 3509391 TumblingDice
TumblingDice's picture

All going according to plan. Let them borrow more to replace their wages. More debt = more wealth. 2 + 2 = 5

Mon, 04/29/2013 - 08:03 | 3509402 SHRAGS
SHRAGS's picture

paging The Dork Of Cork...

Mon, 04/29/2013 - 08:18 | 3509433 negative rates
negative rates's picture

Wait for it, wait, wait, okay, i'm gonna crack this case. Just you wait and see.

Mon, 04/29/2013 - 08:31 | 3509475 He_Who Carried ...
He_Who Carried The Sun's picture

oF COURSE IT DROPS!

Why save if all you get is $150 for $20,000/year (0,75%)? !!

People need to find something that yields 3,5 to 5% otherwise they lose out big time!

Mon, 04/29/2013 - 09:06 | 3509578 robertocarlos
robertocarlos's picture

That's why we have 8% REITS.

Mon, 04/29/2013 - 09:43 | 3509713 Deo vindice
Deo vindice's picture

Smart people are still saving. They're just not saving where it can be counted, registered, taxed or stolen (the last two may be a repitition).

Mon, 04/29/2013 - 10:04 | 3509750 StychoKiller
StychoKiller's picture

Once OJ gets done with his current undercover case, he'll be available to help you... :>D

Mon, 04/29/2013 - 08:11 | 3509424 Sudden Debt
Sudden Debt's picture

AND JUST IMAGINE ALL THOSE ASSETS THAT ALL THAT DEBT WILL CREATE FOR THE BANKS!!

RECOVERY FOR THE BANKS 2013 STYLE!!!

WWF QUOTE OF THE YEAR => SAVE THE BANKS, TAKE A LOAN!!!

Mon, 04/29/2013 - 08:16 | 3509437 negative rates
negative rates's picture

Take out a six month loan, and time will fly by like nothing.

Mon, 04/29/2013 - 08:35 | 3509492 Sudden Debt
Sudden Debt's picture

Well, I think you need to share that pleasure with your kids, so It's more fun to just take out Generation Loans.

I spend, you downpay my sweet little child of mine... if you ever find a job of course... once you turn 18... so in about 9 years from now....

 

Mon, 04/29/2013 - 08:44 | 3509519 negative rates
negative rates's picture

Execpt for I am the kids, watching the parents smoke themselves to death.

Mon, 04/29/2013 - 08:14 | 3509427 butchee
butchee's picture

Everyone knows 2+2=8.

Mon, 04/29/2013 - 08:18 | 3509430 Sudden Debt
Sudden Debt's picture

and 1 ounce = 160 ounces

Mon, 04/29/2013 - 08:50 | 3509530 Bearwagon
Bearwagon's picture

That's plain wrong.  2 + 2 = 22

FIFY

Mon, 04/29/2013 - 08:49 | 3509526 tango
tango's picture

I thought austerity meant that the role of the State in the economy was reduced.  I see the contrary - the State is by far the biggest player in EU economies and this is only growing.   Besides, anyone with an atom of sense knows that a consumer economy (quote unquote) needs consumer buying.  Why institute policies that reduce disposable income (higher taxes, wage controls, inflation).  It reminds me of Japan trying to usher in a wave of consumer spending yet their products are rapidly appreciating in price.  Utterly senseless. 

Mon, 04/29/2013 - 07:57 | 3509392 nodhannum
nodhannum's picture

Damn! Extremely bullish.

Mon, 04/29/2013 - 07:58 | 3509394 sockratte
sockratte's picture

the numbers seperately for each euro country would be interesting...

Mon, 04/29/2013 - 07:58 | 3509395 Skin666
Skin666's picture

Fucked fucked fucked

Mon, 04/29/2013 - 08:17 | 3509442 negative rates
negative rates's picture

Is it flooding in Vicksburg?

Mon, 04/29/2013 - 07:59 | 3509397 q99x2
q99x2's picture

Bummer.

Mon, 04/29/2013 - 07:59 | 3509398 GetZeeGold
GetZeeGold's picture

 

 

Word is checking accounts are about to take a pretty big hit as well.

 

Now you see it......now you don't......and it's gone.

Mon, 04/29/2013 - 07:59 | 3509399 css1971
css1971's picture

Euro Stoxx 600 to the moon!

 

Mon, 04/29/2013 - 08:51 | 3509540 I am more equal...
I am more equal than others's picture

Benny "Pavlov" Bernake has rang the bell, B.T.F.D.

The new normal.   Life without consequences, death or taxes. 

Mon, 04/29/2013 - 08:00 | 3509404 Parisnights
Parisnights's picture

AHHH!  Nothing like a chart to visually track the demise of the Once proud people...

Mon, 04/29/2013 - 08:07 | 3509413 GetZeeGold
GetZeeGold's picture

 

 

Time for another press conference.

Mon, 04/29/2013 - 08:14 | 3509428 Sudden Debt
Sudden Debt's picture

I don't know... what's for lunch?...

Mon, 04/29/2013 - 08:07 | 3509411 blindman
blindman's picture

http://www.youtube.com/watch?v=0QUz9obc1Go
Lowell George Easy Money
.
" the easier it looks the harder it hooks,
there ain't no such thing as easy money." r.l.jones

Mon, 04/29/2013 - 08:13 | 3509415 francis_sawyer
francis_sawyer's picture

They'd better start gettin' busy with those BAIL IN'S or there'll be nothing left to steal... Shit ~ it must be tough work being a banker & trying to figure out just how to keep a ponzi going long enough to be able to steal for yourself at just the right moment...

Mon, 04/29/2013 - 08:54 | 3509542 Bearwagon
Bearwagon's picture

It's not so much tough work, but rather a very specially altered state of consciousness ....

Mon, 04/29/2013 - 08:55 | 3509552 tango
tango's picture

This is WAY beyond evil banksters.  In Europe it's a disease shared by practically the entire continent - Statism.  Long gone are any rational plan, conspiracies or grand ideas.  The EU has retreated to response mode, bouncing off walls as they face one then another then another crisis.  The idea of longterm prosperity - cutting government to industry ties, freeing capital, letting favorite firms fail, reducing taxes to raise disposable income, ensuring a strong currency - are virtually absent from Lisbon to Moscow.  

Mon, 04/29/2013 - 08:10 | 3509417 ParkAveFlasher
ParkAveFlasher's picture

Give us moar cash, we buy moar Gucci, we want moar subscriptions to table-sized art magazines that don't fit in our €50k two-door scooters, we want moar cheese and moar wine.

Mon, 04/29/2013 - 08:08 | 3509419 ekm
ekm's picture

They must go ahead and push for INFLATION, that's the solution.

 

Inflate all INPUT prices, inflate crude oil price, inflate bread price inflate commodities prices.

 

No need to know that there's quite of a difference between Input Costs Inflation and Finished Prouducts Inflation, just inflate.

Life always gets better when all costs get inflated.

Mon, 04/29/2013 - 08:14 | 3509431 francis_sawyer
francis_sawyer's picture

Tell that to the savers & fixed income folks... Instant diet catfood...

Mon, 04/29/2013 - 08:19 | 3509435 ekm
ekm's picture

That's not good. We have to inflate catfood price also.

We have to let the gov know that catfood prices are not inflated enough

Mon, 04/29/2013 - 08:19 | 3509448 francis_sawyer
francis_sawyer's picture

Pussy Galore

Mon, 04/29/2013 - 08:22 | 3509450 negative rates
negative rates's picture

Raise the price yourself.

Mon, 04/29/2013 - 08:20 | 3509452 Sudden Debt
Sudden Debt's picture

CATFOOD PRICES CAN BE DEFLATED IF WE PUT DOGMEAT IN IT!!!

What a Cat eat Dog we live in these days....

Mon, 04/29/2013 - 08:20 | 3509440 Sudden Debt
Sudden Debt's picture

cats taste like rabbits.

Mon, 04/29/2013 - 08:20 | 3509453 francis_sawyer
francis_sawyer's picture

I'm eating shrimp for breakfast... [tastes like chicken ~ until you add in the corexit]...

Mon, 04/29/2013 - 08:38 | 3509493 Sudden Debt
Sudden Debt's picture

Shrimps go great with Bald Eagle Eggs!!

Put the eggs and the shrimps in a blender, fry it and HHMMMM!!! GOOD EATING!!

Mon, 04/29/2013 - 10:21 | 3509805 ParkAveFlasher
ParkAveFlasher's picture

Bald eagle eggs?  Sauvage! I'm a California condor hatchling guy myself.

Mon, 04/29/2013 - 08:18 | 3509444 GetZeeGold
GetZeeGold's picture

 

 

The fortunate ones can still afford the canned variety.......it's moar meaty!

Mon, 04/29/2013 - 08:24 | 3509463 francis_sawyer
francis_sawyer's picture

But if you buy it in cans, you can make a kewl hobo stove...

~~~

http://www.youtube.com/watch?v=8pWyETeTP1E

Mon, 04/29/2013 - 08:08 | 3509423 Joe A
Joe A's picture

It would be really interesting if they could divide this further into various income groups. Let's say, ordinary working folks versus EU officials, EU civil servants and bankers.

The Spiegel would spin it so as it would look like savings and disposable incomes dropped the most in Germany while they raised the most in Spain, Greece and Cyprus.

Mon, 04/29/2013 - 08:18 | 3509436 DavidC
DavidC's picture

Ah yes, austerity. Whereas the stimulation in the US has been a resounding success, let's try that in Europe instead.

DavidC

Mon, 04/29/2013 - 09:02 | 3509565 tango
tango's picture

Exactly.  Those opposed to austerity (which means a reduced role of the State in economic affairs - something not yet done in the EU) offer zero solutions for the future besides "borrowing at low interest rates".  That's really a formula for sustainable prosperity - endless borrowing.  We all know how well it's worked in the US as we head toward a fourth year of "recovery".

Mon, 04/29/2013 - 08:23 | 3509439 22winmag
22winmag's picture

We are all nations of squatters squatting on the ruins of once-great civilizations. In Europe and the rest of the world they know this. They are sad, defeated peoples.

 

However, America has only been around for a few seconds on the 24 hour clock of human civilization and it doesn't matter if we are a "once-great civlization" or not... we are too young to know it... or even care.

Mon, 04/29/2013 - 08:34 | 3509488 bunnyswanson
bunnyswanson's picture

We beg to differ. 

We think this heist of wealth and attempt at elimination of the middle class should be fought with vigor due to a great sacrifice made by men in 1776. 

We knew America would be sought after relentlessly by the Crown of England and her pack of deadly, dedicated and sociopathic wolves in fine suits.

We know - This planet will be a debris field if men without leadership qualities continue to hold the reigns of the civilization's chance for survival and a life worth living. 

Right and wrong applies here.  Nothing less.  Nothing more.  This is a flawed plan.  We would hope you had more imagination, perhaps a weak attempt at a solution.

 

Mon, 04/29/2013 - 08:21 | 3509446 Peter Pan
Peter Pan's picture

How much do they expect people to save when they have no jobs?

Mon, 04/29/2013 - 09:07 | 3509581 Bearwagon
Bearwagon's picture

Can't they borrow something, and then save that?!  ;-)

Mon, 04/29/2013 - 13:40 | 3510576 Poor Grogman
Poor Grogman's picture

Even though they have no jobs they must hurry up and save while keeping their money in a Euro bank account under their own name where it can be more easily collected by the state In the near future.

If people don't have money in banks how can "The Cyprus Template" be applied?

Also, as well as saving, people must also be forced to increase their spending! Which they can do by borrowing if they have no savings. This will help the economy by increasing the demand for goods and services.

Sheesh this is basic Keynesianism and should be well understood by now...

Mon, 04/29/2013 - 08:25 | 3509456 dobermangang
dobermangang's picture

When the governments start stealing money from your bank accounts, is it any wonder that the savings rate would drop?

Mon, 04/29/2013 - 08:40 | 3509507 Joe A
Joe A's picture

And then governments blame people for keeping their wallets closed and not spending their money to stimulate the economy. What money?!

Mon, 04/29/2013 - 08:46 | 3509524 JPMorgan
JPMorgan's picture

Not surprised.

Why keep your money in a bank earning little or no interest, where they can steal it anytime they like at a stoke of a key?

There is absolutely no incentive or benefit to keep your money in the system anymore.

 

Mon, 04/29/2013 - 08:49 | 3509528 Shevva
Shevva's picture

The worst place in the world to trust your money is a bank.

Simple spend it or have it stolen, I know what I'd do.

Mon, 04/29/2013 - 09:01 | 3509570 tango
tango's picture

Buying land, gold...and stocks.  Gold deal paid off well since it's risen by almost $100/oz from the day I bought the last in the store. 

Mon, 04/29/2013 - 09:02 | 3509572 tango
tango's picture

Buying land, gold...and stocks.  Gold deal paid off well since it's risen by almost $100/oz from the day I bought the last in the store. 

Mon, 04/29/2013 - 09:52 | 3509733 Shevva
Shevva's picture

1 simple example, to fix your car 800 Euros with tax or 700 Euros cash in hand, money stays out the bank when paid by cash in hand.

Mon, 04/29/2013 - 08:52 | 3509543 firstdivision
firstdivision's picture

On a side note, Centeral Banks disposable income has risen

Mon, 04/29/2013 - 09:05 | 3509569 Monedas
Monedas's picture

Hoarding PMs, bullets, toilet paper, canned tuna .... is included .... in calculating savings rate ?  LOL

Mon, 04/29/2013 - 09:04 | 3509580 Zen Bernanke
Zen Bernanke's picture

Clearly all the europeans are buying stocks with their savings.   makes total sence. 

Mon, 04/29/2013 - 09:10 | 3509594 Monedas
Monedas's picture

My idea for Haute Cuisine .... is throwing a can of tuna .... and a fistful .... of frozen peas .... in my dollar store mac 'n' cheese !

Mon, 04/29/2013 - 09:19 | 3509623 Smegley Wanxalot
Smegley Wanxalot's picture

 

 

Dear loyal European shitizens,

Please do your duty save more of your money so that we might rightly steal it.

Sincerely,

Your selfless, humble Overlords

Mon, 04/29/2013 - 10:04 | 3509752 Kirk2NCC1701
Kirk2NCC1701's picture

Serf's up!

Mon, 04/29/2013 - 10:41 | 3509890 100pcDredge
100pcDredge's picture

Yolo?

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