•Household Incomes in U.S. Fall Most Since Records Began Being Kept

Discussion in 'Economics' started by ByLoSellHi, Aug 5, 2009.

  1. Oh really?

    No shit. This is the tip of the spear.

    Wait until they get a load of next year.

    American Incomes Head Down, Threatening Recovery in Spending
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    By Shobhana Chandra

    Aug. 5 (Bloomberg) -- Household income in the U.S. is weakening as the influence of the government’s stimulus plan wanes, prompting economists, Federal Reserve officials and a Nobel laureate to warn that consumer spending may struggle.

    “Consumers have started to change their behavior and they are going to save more,” said Richard Berner, co-head of global economics at Morgan Stanley in New York and a former researcher at the Fed. “You have pressure on wages, you have employment still declining.”

    Wages and salaries, which drive recoveries in spending, fell 4.7 percent in the 12 months through June, the biggest drop since records began in 1960, according to Commerce Department figures released yesterday. The Obama administration’s tax cuts, extended jobless benefits and a one-time Social Security bonus have helped mask the damage done by the worst employment slump since the Great Depression.

  2. No comments on this remarkable and unprecedented sea change?
  3. Its old news, and was priced into the markets ages ago. The data is thru June and we're pushing on September. It has zero predictive value, except as a possible contrarian indicator.

    There, you got a comment. Happy.:D
  4. Contrarian indicator? Now that is truly funny.

    I guess when a factory burns down, productivity will rise.
  5. indexer


    For the last 30 years, everything for business, nothing for the US worker. The thing is, business no longer cares about what is good for America, they are multinational corporations who "just happen to have a headquarters in the US".
  6. Bob111


    they will mask more with the clunkers program. it's all over the news along with "Obama team".
  7. Priced in, bullish. Just look at the market. Not one significant down day in how long?
  8. Yes.

    As Yogi Berra would say, "it's like [2007] deja vu, all over again."

    And we all know what ultimately happened back in 2007.
  9. jjf


    But of course.
    The Multinationals have outgrown main street but not wall street. That is yet to come but not for some time.

  10. And given that you know this, why not go long and reap the benefits of the stupidity instead of chiming in day in and day out about how everything is so bad?
    #10     Aug 5, 2009