This page has been archived and commenting is disabled.
Biggest Drop In Personal Income Since Feb 2010 Can't Stop Borrowers Spending, While Savings Rate Plunges
US personal income fell 0.1% MoM - missing the +0.3% expectations by the most since September 2011 - but that didn't stop spending which modestly beat expectations at +0.3%. The drop in incomes is the largest (absent the 2012 year-end debacle) since February 2010. Given the disparity, it is hardly surprising that the savigs rate dropped to its lowest since June. So unsaving is the route to freedom once again as borrowing helps drive durable good spending up 0.77%
As a result, and as expected, the personal savings rate plunged from 5.2% to 4.8%.
- 8138 reads
- Printer-friendly version
- Send to friend
- advertisements -




It's hard to save when you get punished for it and you have that pesky need of having to eat.
You don't need to eat. It's all in your mind. A month or two at the reeducation camp will teach you that, and many other things
No worries. All that wealth being generated at the very top by QE will trickle down and everything will be great. The trickle down model has been working so well for the last 40 years or so, why would it stop now? We just need to generate more wealth at the top to make it work better. That's the answer.
We are in a trickle up world where the wealth of the 99.9% is trickling up to the 0.1%
trickle down
You keep using that word, I do not think it means what you think it means. The current administration does not believe in true trickle down economics (laissez-faire), that's why they think they need the fed to print to fund their stupid trickle up programs.
The administration hasn't been forced to have an opinion... rather, it's simply a conduit.
futures just ramped 10 whole points. did h-rat just pen a 1200 word essay how the taper is off, but if it is on, it would still be bullish?
I'm saving up for a platinum case to keep my EBT card in.
Who needs income when the Fed is printing it?
i don't get it ... if people are getting jobs, ... wouldn't income increase?
I'm not sure if I missed the /sarc tag, but the gains for the last year or two have been people expiring out of unemployment, 'leaving the workforce', not people getting jobs.
Just for fun I looked at some new model homes in the area last weekend and the sales offices were empty. I came across a couple of Yutes who looked bewildered and we began chatting. When asked what their issue was the young couple looked at me and with a look of amazement said, "Can you believe they want $1,000 deposit to buy a house. Who has that kind of money?"
I suspect they are the norm. Low/stagnat wages, zero yield on savings and the Yuteful urge to spend may be some of the reasons our system is in this dire shape.
Don't worry, Eric Holder will issue a mandate that banks must lend to people who can't afford the loan... Everything is fixed again.
http://news.investors.com/070811-577794-holder-launches-witch-hunt-again...
The reason why the pending sales signs turn back to for sale signs is that no prospective buyer has any skin in the game... literally, even for a $300k house, you won't have any earnest money exchanged with the purchase agreement... Further, not only is there no earnest money, but in order to entice a sale, the seller will probably have to pay the buyer's closing costs, etc.
Bernanke and the rest of the Fed banksters, as well as Wall Street, indicate the sheeple to max borrow to spend.
The sheeple are doing what their told to do. Max out student loans, car loans and tap the house if you can.
Well, the DOW closed over 16K, things are better now.... Right? Isn't the "wealth effect" kicking in again?