Posts Tagged ‘consumer spending’

The Reluctant Consumer

John Carney suggests that the downward GDP revision was basically a self-inflicted wound. The main culprit behind the consumer pullback seems to be what Fed Chairman Ben Bernanke calls “fiscal headwinds.” Specifically, the end of the payroll tax holiday left less money in the hands of consumers to spend. We taxed ourselves out of growth. “The lower […]

Consumer Spending Is Overrated

One more advocate of setting the record straight on consumer spending. Don Marron takes up the crusade that Michael Mandel started to accurately portray the contribution that consumer spending makes to GDP. Journalists, commentators, and economists often say that consumer spending makes up 70% of the U.S. economy. Indeed, it’s easy to find several examples […]

Will Deleveraging Kill The Recovery?

However you want to describe it — green shoots, changes in the second derivative, inflection points — talk of a brighter future is all the rage, even in the most pessimistic of hearts. That may be the case but where might all of this take us. Here is some dot connecting from a couple different […]

The Consumer Stays In Hiding

The American consumer appears to have religion. Consider these two data points. The second TALF auction closed today with a measly $3 billion of participation by the Fed. It’s not that the program isn’t working — investor demand for the securities is strong — there just isn’t that much consumer credit out there to securitize. […]