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Savings Rate Drops For First Time In 5 Months Even As Spending Misses Expectations
Personal Spending rose 0.4% MoM, its first rise in three months, but this seems to have been 'funded' by consumers dipping into savings mode with the rate of growth of income rising at the same level as last month and as expected +0.3%. The Spending rate of increase missed expectations however and with the savings rate dropping for the first time in 5 months (to 4.2%) - it suggests a 'man on the street' who is perilously close to the edge to meet his needs.
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Long black markets, bitchez...
people will do whatever it takes, however it takes them..
expect more capital and price controls shortly.
Clearly.....we just need a little more control!
Please submit your proposed schedule for today.....we'll let you know if we approve it.
4 yrs with no tangebile economic growth..this cant continue forever..but when you have it taking 3 yrs to forclose on some one and they arernt paying there 1800 a month mortgage..then i guess they have money to buy other stuff..doesnt look like a sustainable model..lol
4 yrs with no tangible economic growth? If you compare growth to debt, try 40 years.
Is it possible to Corzine your own savings?
http://en.wikipedia.org/wiki/Jon_Corzine
Yes, turn all your paper promises into physical assets that you and your employees/family can defend.
Nice answer! :)
The only people saving are the one collecting interest payments from the peasants. The paycheck-to-paycheck worker is rapidly growing like Anthony Weiner when he reads Twitter.
Or, if the common man is saving, that capital is in the safest bank in all of the world: The Bank of Sealy Posturepedic.
"The Bank of Sealy Posturepedic" ... A major shareholder in this company is Karl "FED Notes" Denninger.
It's all part of the plan.
Savings must be eviscerated, so it shall be.
A family will hide their troubles from their kids and each other until they can´t....they all think its going to get better next month so they will just pay it back then...but its not getting better..its just slogging along...so instead of cutting expenses...they just use up their savings...until they can´t anymore...then consumer spending hits the wall...gas prices are not helping at all..I bet you will see student loans going to pay family expenses instead of going to some college....they will work that deal
BINGO.
Waiting for that myself, because im hearing it around already.
It is also being encouraged, wanna guess who's behind that?
Exactly. One of our neighbors just broke the news to his family that they are flat broke. They are wandering around like flood victims. Terrible to watch.
"..dipping into savings..." -- means paying down less debt and buying more higher-priced necessities, like food, where there is no inflation.
Paying down DEBT is considered SAVINGS. It is NOT savings.
Summer property tax bills. Semi annual life insurance premiums. Food. Gas. Kid's clothes. Yeah,... lot's of people out of work too, lot's of retired people too,... all dipping into savings to maintain lifestyle.
Back to school sales. Enough said.
This is consistent with my observations, for what it may be worth.
Two quick examples: (1) The "for sale" bulletin board at my work has changed--from strictly high-dollar items (motorcycles, ATVs, rolltop desks, etc) to the routine (dolls, garden shears, trash cans, etc). (2) When strip-mall vacancies are (rarely) filled, it seems to be, almost without exception, by the low-end or discount stores.
It's a slow creep...but clearly and ineluctably, we are getting poorer.
High Food/Energy costs plus a disproportionate amount of economic rent going to banksters interest = less spending and savings.
Food (package sizes) and taxes/fees have been increasing. Costs are going up while wages and income are stagnant or going down.
Now you have Benny Bernanke and the fed having an 80% chance of QE3. That should move up food and other prices higher. People will be squeezed again.
More and more storefronts closing while food stamps usage/need is going up as well as deficits.
Bernanke,Dudley and Yellen, hows that academic picture from your Ivory Fed tower look?
You also have increasing deficits (higher and faster). Pile debt and more debt on top of debt as more people are squeezed to the bottom.
Correction: QEn. QE3 was so last year.
What scares me is when there are no savings anymore....whole generations that do not save....that is a controlable populace...you can control them with benies...or food...
And this, too, from the releases today:
"Inflation, meanwhile, appears to pose little threat. Prices rose less than 0.1% in July based on an index linked to consumer spending. The so-called core CPE index, which excluded food and energy, also rose less than 0.1% last month and indicated little inflationary pressure in the economy. Over the past 12 months, the core rate has risen 1.6%."
IT DRIVES ME NUTS THAT THE FED HAS CHANGED THE INFLATION BOGEY FROM ONE STRAW MAN TO ANOTHER BECAUSE THEY HAD TROUBLE KNOCKING DOWN THE OTHER.
very sad.
http://expose2.wordpress.com/2011/11/20/a-voice-from-the-dark/
Believe not those who have a vested interest in lying.
Fellas, if you want to know what the true inflation rate is, calculate it yourself. You know you can't trust the government. They have a major incentive to understate inflation. It's called social security.
Here's what you do: develop your own budget spreadsheet and keep track of all your expenditures. Break it into major categories like household expenses, gas, food. Do it year after year and keep the info.
Then look at the changes MoM and YoY.
Real inflation (subtracting house and car) is 8.5% YoY. Food is up 13.7% YoY. Walmart is up 24%. Clothes are up 13%.
Seem to me like the personal income rate is moving with the paltry interest paid on savings accounts
We live at the edge of the miraculous.
henry miller
That chart doesn't look good for the Christmas season. Are we shaping up for a "Red Friday"???
Spending up, credit cards up. A leveraged recovery?
http://confoundedinterest.wordpress.com/2012/08/30/jobless-claims-stuck-at-dec-12-level-consumer-confidence-remains-weak/
Only retail price inflation is relevant not the false consumer price inflation which was conveniently cooked up by politicians and economists when the figures started to get embarassing .The rape of the middle class in the western world continues under the mantle of globalization.Its time to get the National Razor out, otherwise known as the Guillotine so that we can show the Banksters, WS and the 1% how much we approve of this massive scam.
You missed the most important demographic - POLITICIANS. Start with that group and the rest will get the message.
I'm probably being too optimistic...
... but maybe, just maybe... people aren't saving as much, and aren't spending as much, because they're paying off debt? Maaaaaybe?
This is probably the one and only time I'll not be cynical and try to go for a "glass half full" approach here on ZH.