"U.S. consumers cut spending for a sixth straight month in December and their incomes shrank, according to a government report on Monday that underscored the rapid deterioration in the economy."
- Consumer spending falls, savings jump
I think they should have said a "rapid correction" instead of a "rapid deterioration." Also, notice how it talks about incomes shrinking? That goes hand in hand with my previous post. Still, spending only decreased by 1 percent. When you think about it, people are still spending money. There will always be consumption, just a little less of it.
My favorite part of that article, "Personal savings surged in December to 3.6 percent of disposable income from 2.8 percent in November, the largest rate since May 2008." Sounds like we've learned something. Only a few years ago, personal savings was less then 0%.
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