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US Savings Rate Surges To Highest Since 2012 As Consumers Save "Gas Tax Cut" Instead Of Spending
Following December's worse than expected drop in personal spending (and slowing groweth in incomes), analysts wewre expected the usual hockey-stick bounce... it did not happen. Despite all the exuberance over low gas prices, US personal spending dropped 0.2% in January - twice as bad as the 0.1% drop expected and the 3rd miss in a row. The spending drop was driven in large part by a slide in non-durables. Personal income also missed excpectations, rising just 0.3% (against a +0.4% expectation) hovering at its lowest growth since September. The savings rates surged to 5.5% - its highest since Dec 2012.
Spending drops again and misses for 3rd month in a row...
The reason for the drop? Continuing declines in non-durable spending, as a result of lower gas prices.
As is clear from the right hand side - the gap (savings) is widening
As the savings rate jumps to its highest since 2012...
Not what Yellen wants to see, because what the above data suggests, at least until its revision is that US consumers - waiter and bartender "recovery" notwithstanding - are saving the "gas tax cut" instead of spending it. Time to call the Keynesian police and instite a few executive orders or better yet, start punishing US savers just like in Europe.
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Savings increased cause they are going to raise rates annnyday now.
People are aware the Obamacare fines are going up.....so they're prepping for it.
This is so cool, all the stuff I am reading about for my CFA test in June is happening!
Ben Bernanke "Deflation: Making Sure 'it' Doesn't Happen Here", what an idiot!
Meh. Saving for the corrupt monstrosity that's Obozocare.
The Census Bureau's fourth-quarter earnings survey is out, and the news is generally good. The median American was taking home $41,392 at the end of last year, up 1.7% from last year and slightly outpacing inflation.
http://www.fool.com/investing/general/2015/03/02/heres-how-much-the-typi...
Welcome to recession 2.1
What do you mean "start punishing US savers." That shit has been going on for years.
I like your optimism.
ha, saving for a shitstorm, sheeple know something doesn't ad up. they can not get their pin heads to connect the dots. they still are pre occupied with dress color, nascar, voice or any such shit put in front of their face. none the less they know sumtig aint right. i'll give em dat...
If you can't bite, don't show your teeth.
Unlikely. Even Yellen understands we're slumping.
If you people don't use your Credit Cards A LOT then the Terrorists will Win!!!!!
Get as many cards as you can, MAX them all out buying things you need including the airline ticket out of the USA and never come back.
Worked for me 25 years ago and the banks are still wondering where the fuck I am :-)
Somewhere in Holland?
Yeah, with renunciation certifcate of USA citizenship in hand ;-) Got in last year when it was still 450 bucks. Now its 2400
That shit was written off years ago.
...and equity futures don't care and yields go up. nice job, NY FED. what a sh*tshow manipulation.
But where is everyone keeping their savings? The stock market.(Bahahaha. It means the bubble is about to pop.)
What are you democrate now? Or just writing a book??
And the misses keep coming. So what now is the percentage of misses to date? 93%? 94%? 95%?
They are just waiting for the new Apple Watch to spend on...you can buy two..one for each arm....then I bet they let you into Studio 54..because you are cool baby..
Bloomturd said it is the year of the watch. Must be for they said so. /SARC
Sounds like a real shitty year.
Hey even a stopped clock is right twice a day, if you get one for each arm, you might find a career in investing.
My "spending" is paying everything off. Once that is accomplished I'll still have to be able to come up with roughly $10,000/year in property tax, rain tax, impact tax, tax tax, etc., or my progressive local government will take my home away from me and sell it.
Oh, dear... My above actions have put me on the federal government terrorist and no-fly watch lists.
Yep, pay everything off and unplug. Pay everything in cash.
Whats Cash?
I took the savings and invested in more solar panels and lithium batteries for my scooters which get 600 mpg equivalent . and will pay for themselves years to come.
Retrench - the 15 year model. negative to very low growth will not support the ponzi scheme or big government.
We already punish savers with ZIRP.
Bank of Simmons is where accumulated cash is going. Especially since some are charging to take cash deposits now.
For those with the luxury of a safe deposit box? Well I hope the banks keep regular business hours going forward.......
See - and the dolts who run ZH thought low gas prices were bad for the economy. :-)
Why do you post here?
Since gas has risen over $0.30 cents and will climb higher through June, not sure what you mean?
It means he blew his wad on long $100 oil and now he can't have any fun.
Oil will rise even as world economy stagnates?
GET lots of big mayonaisse jars. Convert paper money to coins and get a shovel. Do it late at night so people don't see you digging in the yard.
Anyone who keeps any more money in their current account than is necessary to pay standing orders is a shit for brains moron.
Yeah we know, your long metal detectors.
Use PVC pipes to store and bury it.
Like the detectors can't see through the PVC...
So forget about saving, get it straight out of your head Like I said, in the long run—we’re all dead Savings is destruction, that’s the paradox of thrift Don’t keep money in your pocket, or that growth will never lift…
ZH needs to make up it's mind. Just the other day there was an official looking chart posted where it was all going to health care. If you don't like the news on ZH just wait a couple of days and you'll hate that too.
Sheesh...according to the "gubbermint data", the average serf should be saving enough in gasoline cost savings, that they can buy a house or Mercedes...
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Hmmmm Neilston is not a Nigerian name.
Limited time offer?
TRUTH as determined by your overlords
Google wants to rank websites based on facts not linkshttp://www.newscientist.com/article/mg22530102.600-google-wants-to-rank-...
google probably needs to go away.. folks should be looking to share their data / peddle their wares on an alternate platform
From the massive abuse of Mr. Digital from government and commercial, I think mabye we should follow the Russian example and go back to typewriters and mail order.
Because I have ZERO debt and home paid off my disposable income keeps going up month by month. I have 4 pensions one in dollars the rest in Euros. Just on the exchange rate alone converting my USA social security at the ATM every month where I take it off LUMP SUM I have gained 200 euros a month for past few months.
do you have an attractive unattached daughter?
I do. she is 46 years old and successful attorney in London area.
I'm 37yo... you're very welcome for your social security. If you manage to save a little bit, can you send some my way..? ZERO chance I see a dime of what I've paid in...
Thanks for the posts, DutchBoy2015. Your success and story helps to keep my dream alive.
Thanks for the posts, DutchBoy2015. Your success and story helps to keep my dream alive.
I do my level best daily to add to the decline in personal spending. Fuck this bullshit economy.
+1000
i like the cut of your jib
Really interesting article. I try to monitor my finances really closely and to save as much as possible. Auto damage can really take a toll on your bank account. www.selljunkcarmichigan.com sell junk car michigan This company is hands down the best place for getting rid of an old car- they purchased my damaged car, picked it up for free, and I got cash on the spot.
I was able to buy a 1 pound chocolate bar at Trader Joe's with mine.
Did you share it with Uncle Warren? You know how cranky he gets without it.
God they never will shut up about their stupid ass, engineered drop in crude. 'We gave you money!' "What will they spend this magnificent windfall on?" "That Putin wasn't ready for that!" "We're so awesome!"
Yes, we understand your awesomeness, you can maniplate your phony markets. Now please GFY.
We just call him his highness.
Yea,,, When the Capitol speaks everyone believes and pays tribute. Good to see others who can see through the shitfall.
What about the 60 cent "gas in" price increase in California?- I would not be surprised if oil companies manage to rig price increases in oil, despite the glut, in order to bail out some bad debt taken on with the fracking boom, unless of course big oil has no involvement with fracking at which point they would join OPEC in crushing these frackin upstarts.
Does home heating spending not show up in these numbers? Anything saved on gas was spent twice on keeping my house from freezing.
I have to laugh at people who are worried about their FICO score.
Not being able to get CREDIT is a good thing when you think about it carefully.
spending will rise short term when tax refunds hit the accounts
Hope they enjoy my contribution this year. Sixteen thousand went to Uncle so he could spread the goodies around, especially those poor, poor mums getting five grand for letting a couple of kiddies survive. For you youngsters I am 66. Next time you tell me I didn't save enough for my retirement I'm gonna punch you in the nose...
Have you ever seen a store with sign ''Don't shop and SAVE 100 percent''
"This was supposed to be a tax cut to help put the American economy back on track, but instead of spending their savings and helping the economy grow, most chose to hoard the cash in a selfish manner."
-Fed Offical
you can run, but you cannot hide
- another fed official
Total Kilometers put on my car last year -3200
Total put on my 3 electric scooters last year - 2600
For those wondering how that can be. everything I need is within a 15 km radius of my home here in the forest in Middle Netherlands.
Saving the gas tax cut? ..... and it's gone!
... cough ... bullshit ... cough ...
Fuck those charts of ZH - a little statistical adjustment for inflation, and viola!
Consumer spending is actually rising:
http://www.bloomberg.com/news/articles/2015-03-02/consumer-spending-in-u...
If Bloomberg says so, it must be true, right?
(Bloomberg) -- Consumer purchases adjusted for inflation rose in January, a sign the plunge in gasoline prices is helping boost the biggest part of the U.S. economy.
MSM = Adjusted truth...
The great American public have clearly concluded that the dumping of oil by the House of Saud is not sustainable and oil prices will be back to a sensible, high price in short order.
In other words, the attempt of Wall STreet and the House of Saud to hamstring Putin's attempt to defend Russian sovereignty and fiddle white American Christians out of the best chance to make an honest living in a generation is doomed to failure.
What can I say? I prefer good news.
That "savings didn't last long. I was paying $2.30-2.50 for 89 octane a month ago here in S. Ca. Now $3.50
Why does anyone believe these numbers,? Posters here laugh at government all the time but when those numbers come out it's like God was speaking. Well even God never pretended to create jobs. The numbers, if remotely correct, probably reflect people paying down some Christmas debts and besides.... who really cares? When I grew up it was normal to stash some cash.
What a conundrum, If we save it's bad for the economy and your accused of hoarding,,, When we spend, spend, spend, some smart ass young punk asks why you didn't save for retirement....... !@#$%^ off!
And,,, I remember when savings were considered capital. Not this monetized digitized crap loosely called money these days.
Well, if we wait for government to straighten this shit out, we're going to be waiting a long, long time considering they're the one's that created the mess.
Last week ZH posted that the "savings" on gas all went to healthcare spending. I guess you can have your cake and eat it too!
The point is that there is little evidence that people are spending the money on the consumer discretionary goods that every talking head on financial telivision was telling us they would.
Now, did it all go to healthcare..? No, of course not. But real people are really not confident, so they are pocketing the money.
You'll always have the sheep that buy the hype and follow the crowd. But it's really tough for your average american to get pumped up at the new all-time highs in the market when they and those around them have seen ZERO improvement in their wages or their standard of living.
People save because there is not enough inflation ;) hence realease the QE Kraken!