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Us Recovery Fears Grow On Consumer Money Worries

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http://www.telegraph.co.uk/finance/economics/7971994/US-recovery-fears-grow-on-consumer-money-worries.html

Americans' disposable income fell last month for the first time since January, according to a report on Monday from the Department of Commerce. After taking taxes and inflation into account, average incomes across the country dropped 0.1pc.

While separate figures showed that heavy discounting by car dealers helped consumer spending climb a stronger-than-expected 0.4pc, the picture of a cash-strapped consumer will do little to ease the fear in financial markets that the recovery is poised to lose momentum over the rest of the year. The S&P 500 fell 0.4pc to 1,060 in late trading.

Official growth figures for the second quarter were cut to 1.6pc this month, and this week investors will get their first insight into the economy's performance over the summer. On Wednesday, the ISM Manufacturing Survey – a key measure of business sentiment – is forecast to have dropped for a fourth month in a row. On Friday, the widely-watched monthly jobs report is predicted to show that 100,000 people fell out of employment in August.

The driver of global demand during the decade-long boom, the American consumer now faces an unemployment rate of 9.5pc and a flagging housing market. "People are struggling with distressed balance sheets and have lost a lot of net wealth since the crisis," said Michelle Meyer, an economist at Bank of America. "This still feels like a recession for a lot of people."

Aren't the Bush tax cuts due to run out at the end of the year!

The recoveryless recovery gathers further momentum.

Still I'm sure it's all contained and a bit more free printed money really can't go wrong can it....

Viva recovery.

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It's a fucovery.

http://www.dailymail.co.uk/money/article-1306834/US-economy-hit-spike-imports.html?ito=feeds-newsxml

US economy is hit by spike in imports

By Simon Duke

Last updated at 10:24 PM on 27th August 2010

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America has slashed its estimate for second-quarter economic growth following the largest spike in imports since Ronald Reagan's first term in the White House.

Shipments from overseas jumped by almost a third to their highest level since 1984, and the resultant increase in the trade deficit carved a record 3.4 percentage points from US output between April and June.

Read more: http://www.dailymail.co.uk/money/article-1306834/US-economy-hit-spike-imports.html?ito=feeds-newsxml#ixzz0y7gDuQzW

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http://market-ticker.denninger.net/akcs-www?singlepost=2149245

Eh, what's so good about this?

Personal income increased $30.0 billion, or 0.2 percent, and disposable personal income (DPI) increased $17.6 billion, or 0.2 percent, in July, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $44.1 billion, or 0.4 percent. In June, personal income decreased $2.7 billion, or less than 0.1 percent, DPI decreased $0.2 billion, or less than 0.1 percent, and PCE decreased $4.0 billion, or less than 0.1 percent, based on revised estimates.

You should hear the CNBS pump monkeys on this one - "well that's a pretty good number..."

It is?

Spending more than one makes is a "good number"?

Well, was it?

Private wage and salary disbursements increased $23.3 billion in July, in contrast to a decrease of $5.0 billion in June. Goods-producing industries' payrolls increased $6.3 billion, in contrast to a decrease of $8.5 billion; manufacturing payrolls increased $5.3 billion, in contrast to a decrease of $5.3 billion.

Well now that is good - at least comparatively.

Personal saving -- DPI less personal outlays -- was $673.4 billion in July, compared with $699.7 billion in June. Personal saving as a percentage of disposable personal income was 5.9 percent in July, compared with 6.2 percent in June.

Remember, savings is defined as "what you make less what you spend", so debt paydowns (or defaults!) are counted as "savings." Only in the world of government does money you don't have and can't spend count as "savings."

Is the government holding steady with the handouts? Of course not.

Personal current transfer receipts increased $6.2 billion, compared with an increase of $7.9 billion.

Ah, the breast with 330 million teats is still flush with milk, and we're all suckling it.

Dennigers take on it.

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Gradually some lights are going on.. that this is a consumer/demand led problem.

Denninger knows the answer I've seen him write it.. but he doesn't take his thinking to the logical conclusion.

Edited by aa3

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Gradually some lights are going on.. that this is a consumer/demand led problem.

Denninger knows the answer I've seen him write it.. but he doesn't take his thinking to the logical conclusion.

This is not a consumer/demand led problem this is a structural "we got rid of all the jobs and thought we could carry on borrowing money to fill the hole and paint a rosy picture of the economy" problem.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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