Friday, May 26, 2006

Negative Personal Savings Rate The Norm?

From Smartmoney:
Inflation Eats Up Income Gains in April

Rising prices offset the gains in personal incomes in April, the Commerce Department said Friday.

Personal incomes rose 0.5% in the month, but consumer prices also rose 0.5%. Real disposable incomes (inflation-adjusted and after-tax) fell 0.1%.

Real per-capita incomes fell 0.2%.

Consumer spending increased 0.6% in nominal terms. In real, inflation-adjusted terms, spending increased 0.1%, starting the second quarter off on a weak note.

Core inflation -- as measured by the personal consumption expenditure price index, excluding food and energy -- rose 0.2% in April, as expected, after a 0.3% gain in March. Core inflation rose 2.1% in the past 12 months, the fastest gain since March 2005.

The increase in the core PCE index was 0.2497%, which rounded down to 0.2%, barely.
...
With spending rising faster than incomes, the personal-savings rate fell to negative 1.6% in April from negative 1.4% in March. The savings rate has been negative for 11 consecutive months.

9 Comments:

Blogger Smart Grid blogger said...

Enjoy the long weekend Holiday at the Jersey Shore !!!

Long Beach Island... home of the Million Dollar Homes !!!

5/26/2006 11:12:00 PM  
Anonymous Anonymous said...

LBI better known as "Paramus South"
A parking lot with sand.

5/27/2006 05:16:00 AM  
Anonymous Anonymous said...

I think we might see some homes being withdrawn from the market. Only the desperate once will be left and those should be squeezed.

5/27/2006 11:25:00 AM  
Anonymous Anonymous said...

10 homes pulled from MLS here in PA by Yardley/Trenton recently in one zip. I notice that a few have gone from MLS to local realtor only.

How could that benefit a seller?

5/27/2006 11:33:00 AM  
Anonymous Anonymous said...

Oh, by the way, despite decline in real earnings, "saving for a house ain't that hard.."

http://money.cnn.com/2006/05/25/magazines/moneymag/down_payment_moneymag_0606/index.htm

I guess if I don't buy my lousy 3 scratch off lottery tickets on Wednesday, we can buy that beachfront house we're waiting for.

5/27/2006 11:37:00 AM  
Anonymous Anonymous said...

I rent, and save $25K a year for downpayment. Gives me the flexibility to buy a $250K house in Middlesex county when real estate prices revert to mean....40% lower from here in the next 2-3 yrs.

5/27/2006 08:44:00 PM  
Anonymous Anonymous said...

Oops..sorry NJResident286 always forget

tinyurl.com/r339c


or
just go to cnn.com, click on business, then real estate.

I wish somebody on CNN money would profile a two income family with one or two kids, $800 to $1000 a month in daycare, etc., and come up with a miracle plan for saving a 25% downpayment around here. We've been brown-baggin' it for 5 years. I'm sick to death of this crap. And my $1.58 lean cuisine lunches.

Totally have turned into a Bob fan.

5/27/2006 09:14:00 PM  
Anonymous Anonymous said...

Anybody have any info or translation for

http://tinyurl.com/nqr37

5/27/2006 09:50:00 PM  
Anonymous Anonymous said...

I have been following a site now for almost 2 years and I have found it to be both reliable and profitable. They post daily and their stock trades have been beating
the indexes easily.

Take a look at Wallstreetwinnersonline.com

RickJ

6/13/2006 01:37:00 AM  

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