- 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 
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 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 , will have no savings left to use for useless trinket purchases. How does GDP “grow” then?
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:
 Zero Hedge: http://www.zerohedge.com/news/chart-day-savings-rate-drops-december-2007-levels
 BEA reported : http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm
 getting cheaper by the day: http://www.zerohedge.com/news/median-us-new-home-price-has-biggest-3-month-drop-ever
 Image: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/10/Savings%20Sept.jpg
Copyright © 2013 PrisonPlanet.com. All rights reserved.