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Tuesday, April 30, 2013

Consumers Draw Down Savings To Spend

Since taxes have been going up, consumer demand has been fairly stable. With less disposable income, how is this possible and is it sustainable? The answers are that consumers are drawing down on savings and no, it is not sustainable. In fact, consumer savings have reached a level usually seen right before recessions:

As you can see, this can go on for a while, but it appears that the Fed is the provider of demand for buying stocks and will have to up their game to make up for slacking consumer demand in the future. The consumer is coming close to being tapped out. Time to run the printing presses faster, guys!