savings

It has been my thesis for some time that we are seeing a secular change in consumption patterns in the United States.  This will have grave implications for a world economy used to seeing the American consumer as an economic growth engine…

Many economic prognosticators believe Chinese consumption growth is key to a global economic recovery.  The US consumer, who had been the buyer of first and last resort during the bubble years, is tapped out and indebted.  The new engine of…

I have been taking a bit of a break as my trip to the Ontario’s Lake Country winds down.  It’s a beautiful place.  But, as Marshall Auerback and I were lamenting, it has become the Hamptons of Canada as everyone from Toronto is up…

This entry from Gary Shilling comes via John Mauldin’s site InvestorInsight.com where he highlights commentary from some of the best economic thinkers. Shilling, who correctly predicted problems in residential real estate in the US, is in…

The Department of Commerce released the Personal Income and Outlays data for June 2009.  What the data showed was a very unbalanced month in which personal income and savings dropped but personal consumption expenditures rose.  In…

This post is going to be a bit wonkish.  I apologize for those of you who are not economics geeks.  Hopefully, you will find it interesting nonetheless. At the urging of my good friend Marshall Auerback, I have been looking into…

I happened upon an article about shops being closed in France that highlighted a larger issue about cultural attitudes in the U.S. and Europe regarding work, leisure and material wealth.  I would like to share some thoughts with you on…

PIMCO, the world’s largest bond fund, has a new investment outlook by Founder Bill Gross. In it he says that we are in a long-term lower growth pattern as the asset-based economy of yore has melted away.  He warns that this means risky…

The data for personal consumption came out yesterday.  However, I have not had a chance to look at the data and write a post until now.  What I see right now is not good for a sustainable recovery.  Let me tell you why and how this could…

Predictions that the savings rate would increase as the Depression in America took hold are coming true. The Bureau of Economic Analysis reported that the savings rate in the U.S. hit 5%.