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

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Tue, 08/02/2011 - 08:43 | 1516219 Debt Rolling
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A new recession has begun. And when people expect it the least, as always.

Tue, 08/02/2011 - 08:43 | 1516221 Mike2756
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Wealth effect!

Tue, 08/02/2011 - 08:46 | 1516230 equity_momo
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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.

Tue, 08/02/2011 - 08:50 | 1516249 SheepDog-One
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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.

Tue, 08/02/2011 - 08:56 | 1516284 Debt Rolling
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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.

Tue, 08/02/2011 - 09:31 | 1516430 dbach
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.

Tue, 08/02/2011 - 10:01 | 1516522 spiral_eyes
Tue, 08/02/2011 - 10:04 | 1516524 spiral_eyes
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[sorry for double post]

Tue, 08/02/2011 - 10:23 | 1516606 ElvisDog
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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.

Tue, 08/02/2011 - 09:29 | 1516420 SteveNYC
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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.

Tue, 08/02/2011 - 08:51 | 1516260 Sudden Debt
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....


Tue, 08/02/2011 - 08:54 | 1516275 papaswamp
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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.

Tue, 08/02/2011 - 09:05 | 1516330 Sgt.Sausage
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New? When did we leave the last one?

Tue, 08/02/2011 - 08:43 | 1516222 HelluvaEngineer
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Diebold's gonna have to push out some new code if Obama's gonna be reelected.

Tue, 08/02/2011 - 08:55 | 1516282 Iriestx
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Betweent he welfare queens and the illegals he's going to grant amnesty to next year, he's got a victory locked up.

Tue, 08/02/2011 - 08:45 | 1516224 orangedrinkandchips
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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.

Tue, 08/02/2011 - 08:47 | 1516238 HelluvaEngineer
HelluvaEngineer's picture

but it's got what plants crave!

Tue, 08/02/2011 - 08:49 | 1516245 caerus
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Gatorade - The Thirst Mutilator

Tue, 08/02/2011 - 08:51 | 1516264 tinsmith
tinsmith's picture

" 'Lectrolytes! "

Tue, 08/02/2011 - 08:51 | 1516252 TaxSlave
TaxSlave's picture

Ha, you drank that stuff?   Why??

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

Tue, 08/02/2011 - 08:50 | 1516256 SheepDog-One
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But its got electrolytes!

Tue, 08/02/2011 - 08:55 | 1516283 Sudden Debt
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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 :)

Tue, 08/02/2011 - 09:01 | 1516315 goldsaver
goldsaver's picture

Brawndo is what plants crave!

Tue, 08/02/2011 - 09:01 | 1516317 KenShabby
KenShabby's picture

Charlie Chaplin and those Nazis. Lol

Tue, 08/02/2011 - 08:57 | 1516292 papaswamp
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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.

Tue, 08/02/2011 - 09:02 | 1516319 Bob
Bob's picture

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

Tue, 08/02/2011 - 10:22 | 1516602 Newsboy
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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.

Tue, 08/02/2011 - 08:46 | 1516228 slaughterer
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.


Tue, 08/02/2011 - 08:52 | 1516267 Fazzie
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.

Tue, 08/02/2011 - 08:46 | 1516229 Hansel
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"partly offset by upward revisions to rental income of persons"

Pimpin' is easy!

Tue, 08/02/2011 - 08:56 | 1516286 SheepDog-One
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Pimpin IS easy, no doubt.

Pimps up, ho's down.

Tue, 08/02/2011 - 08:46 | 1516232 Debt Rolling
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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. 

Tue, 08/02/2011 - 08:47 | 1516233 Fazzie
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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!

Tue, 08/02/2011 - 08:47 | 1516234 caerus
caerus's picture

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

Tue, 08/02/2011 - 08:47 | 1516235 doomandbloom
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Tue, 08/02/2011 - 08:49 | 1516244 Mike2756
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Do ya really wanna jump?

Tue, 08/02/2011 - 08:47 | 1516236 orangedrinkandchips
orangedrinkandchips's picture

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

Tue, 08/02/2011 - 08:55 | 1516280 wang (not verified)
wang's picture

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


Tue, 08/02/2011 - 09:03 | 1516324 Sudden Debt
Sudden Debt's picture



Tue, 08/02/2011 - 08:47 | 1516237 TaxSlave
TaxSlave's picture

Enjoy your servitude, drones!



Tue, 08/02/2011 - 08:47 | 1516239 EscapeKey
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"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?

Tue, 08/02/2011 - 08:49 | 1516242 slaughterer
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All the bears should lay on heavy shorts today on this miniscule data drop before the ADP miss tomorrow.  /sarc.  

Tue, 08/02/2011 - 08:59 | 1516306 Mike2756
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It was a buying opportunity!

Tue, 08/02/2011 - 08:50 | 1516251 Cdad
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!

Tue, 08/02/2011 - 08:52 | 1516268 SheepDog-One
SheepDog-One's picture

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

Tue, 08/02/2011 - 08:57 | 1516293 Cdad
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!


Tue, 08/02/2011 - 09:04 | 1516325 SheepDog-One
SheepDog-One's picture


Tue, 08/02/2011 - 09:29 | 1516417 Larry Darrell
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.

Tue, 08/02/2011 - 09:49 | 1516494 Cdad
Cdad's picture the cost of the Novartis products...for a grand total of $20.


Tue, 08/02/2011 - 08:50 | 1516255 max2205
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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