Income And Spending Both Miss, Savings Rate Jumps To Highest Since February, Major Historical Downward Revisions To Income

Tyler Durden's picture

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Debt Rolling's picture

A new recession has begun. And when people expect it the least, as always.

equity_momo's picture

Eh? Who here , or who with a brain , didnt expect another recession? Assumuing we even left the first.


This is as predicatable as the sun rising in the East and setting in the West.

SheepDog-One's picture

Ive certainly been saying it all along thru the 'green shoots' for 2 years, we never left the recession, just papered over it a bit.

Debt Rolling's picture

We did left - at least, statistically - the recession, even if it was a temporary move based on government pumps.

Now we are entering a contraction even the BLS will be forced to recognize, and it rings like the "end game". The bailouts of 2008-2009 were just not conceived for a stall, even less for a double dip.

dbach's picture

I agree that there was probably no plan B, just more of the same cheerleading and printing probably, with diminishing marginal returns.

ElvisDog's picture

Governments can always "exit" a recession if they want to, because deficit spending adds to GDP. If you want to hit a certain GDP figure, just adjust the size of the deficit. China does the same thing with their construction spending. If the current 12% U.S. deficit were reduced to a more historically-normal 3-4%, we would be staring at a 9% contraction in GDP.

SteveNYC's picture

I'm wondering how much the top 5% - 10% are distorting the "saving" numbers. There is almost no possible way for anybody outside the top 10% to "save" money from wages, living at or below the poverty level to save expense would be a necessary condition to doing so.

Sudden Debt's picture

At least everybody got a good vacation rest. Batteries back to 100%!

I do think more people are aware of it than back in 2008. But if they prepared accordingly....


papaswamp's picture

Main street never left the recession....the $16+ Trillion thrown at the economy is quickly wearing off for the markets now and reality is setting in.

Sgt.Sausage's picture

New? When did we leave the last one?

HelluvaEngineer's picture

Diebold's gonna have to push out some new code if Obama's gonna be reelected.

Iriestx's picture

Betweent he welfare queens and the illegals he's going to grant amnesty to next year, he's got a victory locked up.

orangedrinkandchips's picture

wait....the stupid dipshits are NOT buying the $2.65 CUP OF COFFEE!!!! shit, remember when it was..."hey brother can you sparea  dime for a cup of coffee?"....And while I am ranting today...fuck gatorade. Hydration? SNP! It is fucking sugar water with artificial coloring! So, you get more dehydrated BUT your blood sugar goes to the moon! It is fucking worthless all under the guise of stealth H20's the best thing on earth.


Never will I ever ingest gatorade again in my life.

TaxSlave's picture

Ha, you drank that stuff?   Why??

BTW, it's not sugar.  It's high fructose corn syrup.  Diabetes in a bottle.

Sudden Debt's picture

It kind of reminds me of a movie where everybody only drinks that stuff for the electrolytes :)

the president was a porn star and all. That movie was so stupid I just had to watch it :)

papaswamp's picture

try powerade crash...unlike the markets hoping for more Fedorade which is loaded with sugar.

Pedialyte is also good. Yea it's for babes and tastes nasty, but good electrlyte replacement.

Bob's picture

Hey, I've heard this one before--take it in for the touchdown, WaterBoy:

Newsboy's picture

1.2 liters of water (or a quart and 2 cups)

2 level tablespoons sugar (sucrose)

level half teaspoon salt

juice of a lemon or lime for flavor

This is an optimum oral rehydration solution. It is slightly more optimum if you use glucose instead of sucrose. It is slightly more optimumer with level 1/4 teaspoon baking soda and level 1/4 teaspoon potassium chloride also added. Not necesary.

Actually the stuff they sell at HEB grocery stores dooes not have high fructose corn syrup, and is more ideal than Gatorade.

All of them have more sugar than they should, easier to sell.

This stuff was not cooked up by the Florida gators.

It is derived from the World Health Organization Oral Hydration Solution.

That was devised to save the lives of people in India, dying of diarrhea, who were too poor to afford IV fluids.

That's not as good for advertising to sell an overpriced product.

slaughterer's picture

Downward historical revisions to 2008-2010 matter little right now. 

The miniscule decline in personal spending is just people saving up for their holidays later in the summer.


Fazzie's picture

 I wont junk you, but I think a lot of vacations are going to be scaled back/called off due to lack of disposable income. 

 We will know the end is near when households are forced to buy only one Ipad and downgrade their netflix service. This is grapes of wrath 2011 style.

Hansel's picture

"partly offset by upward revisions to rental income of persons"

Pimpin' is easy!

SheepDog-One's picture

Pimpin IS easy, no doubt.

Pimps up, ho's down.

Debt Rolling's picture

Expect the mainstream newspapers to be filled with reports of a 2008 redux in 3 months. For now, the GDP is already contracting, but the Zeitgeist needs to catch up later with this fact. 

Fazzie's picture

I hear the thundering of hooves in the distance as the bag-holding BTFD bulls realize theye been had and stampede for the exits.

 Looks like the soft patch has turned into quicksand. Get ready to dust off your Dow 10000 hats!

caerus's picture

everyone should immediately run out and buy some lulu yoga shit.../sarc

orangedrinkandchips's picture

Niggas With Attitude (NWA) said it best....years ago..."it's all about a salary not about reality..."

wang's picture

and to think Dre and Ice Cube are major players in the biz today and essentially mainstream


Sudden Debt's picture



TaxSlave's picture

Enjoy your servitude, drones!



EscapeKey's picture

"rental income" that offset downward income revisions came exclusively from the $50-100 billion squatters' rent annually "generated" from homeowners not paying their mortgages

Since these missing payments are included in the consumer spending/savings rates, doesn't this effectively book the same revenue twice?

slaughterer's picture

All the bears should lay on heavy shorts today on this miniscule data drop before the ADP miss tomorrow.  /sarc.  

Mike2756's picture

It was a buying opportunity!

Cdad's picture

Personal spending was far worse than expected, coming at -0.2%, down from a revised 0.1%, and missing expectations of 0.0%.

Revolution of the Closed Wallet!  It is good to see the foot soilders swelling.  No better way to take down an unrepentant banking cabal...then to simply reject consumer discretionary spending.  The ripples flow out from there to hit the value of their assets.  

And to think...Simon Property Group is sitting near its ALL TIME HIGHS.  I hear a purring sound coming from the IMPLODE-O-METER!

SheepDog-One's picture

Brother Cdad, can ya spare $8 for a burrito?

Cdad's picture

Prices have increased there, over $9...and more than $12 when you include the Novartis products required to clear your colon afterwards.  What a deal!


Larry Darrell's picture

I assume you already have the $5 for the chips and queso and $3 for the drink.

With tax, that'll be $17 bennie bux please.

Cdad's picture the cost of the Novartis products...for a grand total of $20.


max2205's picture

In other words, the "rental income" that offset downward income revisions came exclusively from the $50-100 billion squatters' rent annually "generated" from homeowners not paying their mortgages. End result: a surge in the savings rate to 5.4% from 5.0%, the highest since February 2011, as consumers retrench across the board.


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