- Prison Planet.com - http://www.prisonplanet.com -

Chart Of The Day: Savings Rate Drops To December 2007 Levels

Posted By yihan On October 28, 2011 @ 7:07 am In U.S. News | Comments Disabled

Zero Hedge [1]
Friday, October 28, 2011

Wondering how it was possible for Q3 GDP to post such a substantial beat yesterday driven by a surge in Personal Consumption expenditures? Wonder no more: in the last quarter, the US consumer literally tapped out, bringing their savings rate from a 2011 high 5.3% in June to 3.6% in September, after the BEA reported [2]that while spending increase was in line with expectations at an unsustainable 0.6%, income was just barely above unchanged at 0.1% on expectations of 0.3% confirming that as far as the economy is concerned, the consumer is just getting worse and worse off. This is the lowest number since the depression started back in December 2007! The only problem is back then it had been lower and was rising in anticipation of the fallout from the Great Financial Crisis, this time it was modestly higher and is now plunging. Very soon deleveraging Americans, whose homes are getting cheaper by the day [3], will have no savings left to use for useless trinket purchases. How does GDP “grow” then?

Chart Of The Day: Savings Rate Drops To December 2007 Levels Savings%20Sept [4]

 


Article printed from Prison Planet.com: http://www.prisonplanet.com

URL to article: http://www.prisonplanet.com/chart-of-the-day-savings-rate-drops-to-december-2007-levels.html

URLs in this post:

[1] Zero Hedge: http://www.zerohedge.com/news/chart-day-savings-rate-drops-december-2007-levels

[2] BEA reported : http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm

[3] getting cheaper by the day: http://www.zerohedge.com/news/median-us-new-home-price-has-biggest-3-month-drop-ever

[4] Image: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/10/Savings%20Sept.jpg

[5] American Spending Goes Into Overdrive As Savings Plunge To 2008 Levels: http://www.prisonplanet.com/american-spending-goes-into-overdrive-as-savings-plunge-to-2008-levels.html

[6] Consumer Confidence Plunges To December 2011 Levels, Biggest Miss To Expectations In 7 Years: http://www.prisonplanet.com/consumer-confidence-plunges-to-december-2011-levels-biggest-miss-to-expectations-in-7-years.html

[7] US Economy Has To Generate 256K Jobs Per Month Until The End Of Obama’s Second Term To Regain Lost Jobs Since December 2007: http://www.prisonplanet.com/us-economy-has-to-generate-256k-jobs-per-month-until-the-end-of-obamas-second-term-to-regain-lost-jobs-since-december-2007.html

[8] Labor Force Participation Rate Drops To Fresh 25 Year Low, Adjusted Unemployment Rate At 11.7%: http://www.prisonplanet.com/labor-force-participation-rate-drops-to-fresh-25-year-low-adjusted-unemployment-rate-at-11-7.html

[9] The Anti-Savings Model – Offer 0.1% APY on Savings Accounts and Charge 15% on Credit Cards. A System Designed to Punish Savers and Encourage Extravagant Spending via Usury: http://www.prisonplanet.com/the-anti-savings-model-%e2%80%93-offer-0-1-apy-on-savings-accounts-and-charge-15-on-credit-cards-a-system-designed-to-punish-savers-and-encourage-extravagant-spending-via-usury.html

Copyright © 2013 PrisonPlanet.com. All rights reserved.