America, Wall Street is concerned that you are saving too much $, and not dumping it into the trough

[marmar]

:nopity:



Pimco’s Clarida Says U.S. Savings Rate May Exceed 8% (Update1)
By Thomas Keene and Susanne Walker


Sept. 28 (Bloomberg) -- Pacific Investment Management Co. strategic adviser Richard Clarida said the U.S. savings rate may exceed 8 percent, hurting consumer spending and weighing on the economic recovery.

“I’m in the glass is half empty camp,” Clarida said during an interview in New York on Bloomberg radio. “Traditionally the consumer comes to the rescue of economic recoveries. We’ll see a more subdued consumer.”

Americans took on less debt to repair tattered balance sheets, pushing the savings rate up to 6 percent of disposable income in May, the highest level since 1998. It last exceeded 8 percent in December 1992. Consumer spending accounts for more than 70 percent of U.S. economic activity.

Only 8 percent of U.S. adults plan to increase household spending, almost one-third will spend less, and 58 percent expect to “stay the course,” a Bloomberg News poll showed Sept. 17. More than three in four adults said they reduced spending in the past year, the poll showed.

Officials at Newport Beach, California-based Pimco, the world’s largest bond fund manager, have forecast a “new normal” in the global economy that will include heightened government regulation, lower consumption and slower growth. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aHM.2Uhxnnr4

[Earth_First]

1. Consumer spending habits have change for good imo...

Enough people caught on that some will return to a negative savings rate, but most will have adjusted their spending habits on the order of permanently.

...I hope.

[TygrBright]

2. Hot Off the Clue Phone: People Won't Spend Money Until They HAVE JOBS n/t

[Broken_Hero]

3. ......

:thumbsup:

[prolesunited]

5. or are secure that they won't lose their jobs tomorrow

But, I don't think it's ever going to return to binge levels. So many lost so much or saw family members and friends devastated.

People will start spending more than they are now, but I think it will be within reason and not crazy consumerism.

[unpossibles]

7. no shit.

Hey CEOs and other executives: remember how you slashed jobs to artificially cut costs and increase profits? Well, maybe this never occurred to you but now perhaps you see why this is such a short-sighted and stupid plan, and that most Americans are not going to be able to buy your products if we can't feel secure that we'll be able to pay the fucking bills. And even when we can afford to shop, we're going to be a lot choosier and smarter with our dollars, and go back to <gasp!> saving.

[ddeclue]

10. +1 MILLION!

[AndyA]

8. Seems a rather obvious requirement, doesn't it?

America needs to get back to the basics. We need to make things here, buy things made here, and that will put people back to work. No more tax breaks for American companies to go overseas.

[Rex]

4. This is payback for raising gas prices to criminal levels right before the crash.

Fuck you Wal-Mart Street! My new car sips gas and I've gone back to learning how to eat on a poor, working man's budget. So once again, FUCK YOU WALL STREET.

[SouthernLiberal]

6. What did they expect?

Americans, one way or another, have gotten the message from American business - our jobs are not safe. It doesn't matter how well we do them, or how loyal we've been. The bottom line is the only thing that matters, and there will always be someone, somewhere, who will do our job for less. Maybe not as good as we do it, but again, this does not matter.

There is no security short of an individual's private wealth.

This message has been pounded into our heads for a decade or more. Even the dim-wittest of us has finally gotten the word.

And now, we learn that business are surprised and dismayed that we're saving more and spending less.

What else did they expect?

[BlooInBloo]

9. LOL! People unemployed, and banks only giving loans to the rich. Fuck you banks.

[tosh]

11. Screw Wall Street.

It's that simple.