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Economy Title: Americans are failing to pump gas-price savings back into the economy Americans are taking the money they are saving at the gas pump and socking it away, a sign of consumers’ persistent caution even when presented with an unexpected windfall. This newfound commitment to frugality was illustrated this past week when the nation’s biggest payment-card companies said they aren’t seeing evidence consumers are putting their gasoline savings toward discretionary items like travel, home renovations and electronics. Instead, people are more often putting the money aside for a rainy day or using it to pay down debt. That more Americans are saving their bounty at the pump comes as a surprise, because the personal savings rate, after rising during and after the recession, has declined steadily over the past two years. “We haven’t seen the extra savings from lower gas prices translate into additional discretionary consumer spending,” said Ajay Banga, chief executive of MasterCard Inc. MA, +0.80% , on a conference call Friday to discuss quarterly earnings. The new data are perhaps the best indication to date that the pain of the recession remains fresh in the minds of many Americans, even as the economy picks up steam. The Commerce Department said Friday that the U.S. economy grew at a 2.6% annual rate in the fourth quarter. Personal consumption expenditures rose 4.3% at a seasonally adjusted annual rate in the last three months of 2014, representing the biggest increase since the first quarter of 2006. Also on Friday, the University of Michigan said consumer sentiment in January reached its highest level in 11 years. The closely watched index has increased in each of the past six months, rising 20% since July. But that positive outlook doesn’t mean consumers feel emboldened to splurge with their savings at the pump, and card-company executives said spending growth would have been higher if consumers had put their gas savings toward more big-ticket items rather than savings. Poster Comment: $1.65 / gallon this morning here in Houston... Plus an extra 10¢/gallon discount if I use my Kroger card. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest If people would just buy one ounce of silver every time they gas up at the lower price, they would cement their security for a little while. Take the savings and actually trade the paper for something that will give you a hedge against the future hyper-inflation to come.
#2. To: Willie Green (#0) Americans are taking the money they are saving at the gas pump and socking it away, a sign of consumers’ persistent caution even when presented with an unexpected windfall. In many places in the U.S. the price of gasoline and diesel has already climbed 15 cents from a low just a week ago.
#3. To: jeremiad (#1) If people would just buy one ounce of silver every time they gas up at the lower price, they would cement their security You buy silver. I'll buy gun powder, primers and projectiles with my extra cash. Every society gets the kind of criminal it deserves. What is equally true is that every community gets the kind of law enforcement it insists on. Robert Kennedy #4. To: Willie Green (#0) It's because they're racists and want our Dark Messiah to fail. The whole country is overrun with these KKKers.
The new data are perhaps the best indication to date that the pain of the recession remains fresh in the minds of many Americans, even as the economy picks up steam. This is a trend that will worry the Fed, the big banks and the retail and real estate sectors. The 2009 fiasco dampened a lot of unrestrained consumer spending. And the retirement of the free-spending boomers doesn't help a bit.
#5. To: Otter, jeremiad, Willie Green (#2) This is a link to a national gas price heat map that you may find interesting. Sorry but I don't know how to post the image of the map that is shown on the site. Perhaps you do?
#6. To: Willie Green, All (#0) The new data are perhaps the best indication to date that the pain of the recession remains fresh in the minds of many Americans, even as the economy picks up steam. More likley they have lost confidence in anything that comes out of the current Adminstration's mouth about just about everything. Who are you gonna believe, the Emperor or your lying, hard knock life?
#7. To: Willie Green (#0) People have extra jingle in their wallets. Other prices on such things as food and air travel remain high for no apparent reason other than to milk the sheeple.
#8. To: SOSO (#5) Sorry but I don't know how to post the image of the map that is shown on the site. Perhaps you do? No idea.
#9. To: Willie Green (#0) Title: Americans are failing to pump gas-price savings back into the economy If they spend the savings at the mall, a lot of the money will flow into the economy of China. The money needs to be spent on American made goods to remain in the economy. If you need some jeans or overalls buy Roundhouse, and the money flows to Shawnee, OK rather than Shanghai.
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