Saving US Consumers

Bullion Vault
Everyone agrees higher US saving rates are needed. But just not yet – please…?

“STOCKS SEESAW as savings rate jumps,” said the AP on Friday, amending its earlier “Stocks decline” headline to try and fit the moves to the news, rather than the other way round.

Either way, reckon the newswires, “Investors are nervous because consumers are saving more than they’re spending.”

But if it really was the 15-year high in US personal savings rates – way up at 6.9% of gross income – that spooked investors, just wait until Wall Street gets down to crunching Uncle Sam’s give-and-take in the latest Commerce Dept. figures.

And heaven forbid the Chinese take a peek at US consumers’ earnings…

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