Gabriel Burin writes that the U.S. savings rate sank last month to its lowest since November.
“Households were only able to boost consumption in the third quarter by dipping into their savings,” said Paul Dales, senior U.S. economist at Capital Economics, after the Commerce Department release. “Faced with the prospect of major tax hikes in the New Year, however, they will soon become more cautious”……..
Given the current Chinese and European situations and the three straight declines in year-over-year U.S. GDP, it seems like we are going into a global recession. Consumers will pull back joining business and worsen the U.S. fall in Q1 of 13.
I am also concerned about 2013 but, as always, there is more than one possible scenario.