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US Savings Rate Jumps To Highest Since 2012 As Spending Continues To Miss Expectations
For the 4th month in a row, personal spending growth missed expectations. With a 0.1% gain in February (against expectations of a 0.2% rise), this growth rate remains below all of 2014's growth. Income rose slightly more than expected at 0.4% (against +0.3% exp) but this is the same growth as January's upwardly reviused +0.4%. That leaves the powers that be very disappointed as the savings rate jumps to the highest since 2012, not exactly the Keynesian pump-primed, low gas prices tax cut spendfest all the smartest people in the room promised.
Spending misses for 4th month in a row.
Leaving the savings rate surging to the highest since 2012. What is ironic is that since this is a goalseeked data point, and one which was massively revised lower in the end of 2014 since the BEA was unable to account for Obamacare spending, expect this to eventually be revised far lower once again.
For now, however, the divergence grows.
Even as spending on goods, both durables and non-durable, has gone exactly nowhere in recent months...
... as Americans continue spend the bulk of their meager disposable income only on services.
Bottom line, expect another avalanche of downward GDP revisions, with all eyes on the Atlanta Fed which will have no choice but to cut its Q1 GDP to 0.0% now, or even push it negative.
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That leaves the powers that be very disappointed as the savings rate jumps to the highest since 2012,...
Under ZIRP... but that's unpossible! Not that we were actually going to raise rates anyway.
But seriously folks, should thrift still be legal? It makes central planning that much harder.
How do they know what my savings rate is, are they sneaking into my house and looking under my mattress? I could be spending what they think is savings in the black market where it doesn't show up as legal spending.
(Its Fuck With Nerds Day)
Exactly. Somebody is ASS - U - MING that higher income - less retail sales = savings. It is dangerous to assume !
Does craigslist report sales ? This kinda humorous.
Grandma Yellen just told you people saving cash was BAD!
Obozocare deductables and the law of unintended consequences.
If it was so good for us, then why did he have to put a gun to our heads to make it work for him?
Y'all beat me to it. Yup. Saving for that big planned luxury splurge on health care premiums scheduled to go up a couple 100% or somethin' like that. (If you like your iron fist, you can keep your iron fist)
But don't worry. Once the weather turns good, the muppets (er, excuse me, the "folks") will see the light (like a sunny day, pun) and splurge on an extravagant Lamborghini or discounted Greek island for the holidays
Long Live Green Shoots and hair transplants
As the owner and operator of the casino, it is only fitting that the Fed is trying desperately to get the public to spend more at the tables. It seems so obvious to me that they need to start with the free drinks. It works every time.
Sounds good. I'll have a Goldschlager.
The conversation is so toxic over at the Fed that you have to be drunk just to listen to them, not laughing is the key, you can do that when, well you know.
We should make hand-me-down clothes illegal. Those people are screwing up China's manufacturing economy! And a bit of our part time, minimum wage cashier economy.
This cannot stand! Clearly people need to have their savings confiscated and spent by someone who knows what they are doing.
Afterall, I'm just thinking of the seniors here.
It's for the elderly childrentm
Greedy 'Mericans only thinking of themselves. This is the kind of recovery you get when everyone is worried about themselves, and no one thinks about the greater economy. We need you to get out there and spend, or we'll do it for you!!
\s
Incomes rose 0.4% ? Hmm, let me check my paystub (slave stub) again...
We need to print money till these dreaded savers go broke.
I don't know why this is so hard for them to figure out. Wages aren't growing b/c companies aren't selling enough goods to give out raises. Also, people are racked with debt. Without rising wages, they can't service MORE debt. So, this stupid FED policy of low interest rates isn't doing jack shit. They can't create growth with more cheap debt. Find another bullet, FED.
I'll spend when... what did Lord Rothschild say, "When there's blood in the streets"?