USA consumer economy is just TERRIBLE right now - And msm news is HIDING THE TRUTH, failing to tell you how bad the economy is in Amercia
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comments and news VIDEO from net, Posted in Top Serious
In case you didn't notice, the USA public's CONSUMER SPENDING has gone to hell.... WHY?
The public today is VERY reluctant to spend freely due to *volatile & fearsome economic and political uncertainty*. Thus a wide swath of middle-class Americans are hoarding money in banks.
Total bank deposits rose 6.6% last year to $10.7 trillion, extending a bank deposit trend seen in recent years, per data from the Federal Deposit Insurance Corporation.
Deposits measured as a percentage of bank assets are 77.6% in the first quarter of 2017, the highest since 2006, according to data economic research firm Moebs Services.
And Americans love liquidity. They hold about $2 trillion in checking accounts now, says Mike Moebs, CEO of Moebs Services, [which provides research and consultancy services to financial institutions]. The average U.S. checking account deposit is about $3,600, climbing from $1,000 in 2007, he says.
"People are choosing to deposit (their money) rather than increase spending," says Paul Merski, group executive vice president of congressional relations and strategy for the Independent Community Bankers of America.
A dearth of investment confidence is also driving the hoarding behavior. Only about half of Americans are invested in the stock market, according to Gallup. And other common options, such as certificates of deposits and savings accounts, are offering interest rates that are barely above those of checking accounts.
While saving is traditionally deemed a personal finance virtue, would-be shoppers holding tightly onto their budgets HAS CAUSED A SEVERE drag on the economy (which is historically driven by consumer sending). U.S. consumer spending was relatively flat, supposedly up only 0.1% in May (if that, who can trust these numbers, it was in truth, likely DOWN). Who, anymore, trusts the "latest data from the Commerce Department".
Also Retail and auto sales have also been extremely sluggish.
Consumers "are not spending," Moebs said. "The Great Recession isn't over for consumers and small businesses. Small businesses feel a great deal of uncertainty and they're being very cautious, especially with any capital plans they have. "
High debt obligations also are affecting household spending decisions. Total household debt balances rose by 1.2% in the first quarter from the previous quarter to $12.73 trillion, according to the Federal Reserve Bank of New York (again these official stats are usually BS so its probably worse than that). That's 11th consecutive quarter of household debt growth and it SURPASSES the peak of $12.68 trillion in household debt seen in the third quarter of 2008. Read that last statement again and digest it. ITS PRETTY SERIOUS.
(This story used data from USA-TODAY reportage as one of its sources)