Kathleen Madigan at WSJ observes:
In order to increase spending, consumers have been saving less to offset the money lost when tax rates rose this year. That strategy is unsustainable. Unless job and wage growth pick up, U.S. consumers don’t have the financial heft to save the global economy.
Read more at Sorry, World, U.S. Consumers Can’t Save You – Real Time Economics – WSJ.
The fallacy of this report is that those lucky to still have jobs have jobs that pay well above the average blue collar worker. These highly paid employees have also seen the price of their homes increase and the value of their company stock and/or 401-k plans sky rocket. WSJ and other financial media have lost touch with reality and their staffs are stuck on the 1930’s BS hand fed to them by their college professors. The financial media has been wrong about stocks and bonds and commodities for years. Anyone who has followed their advice is missing one of the greatest bull markets in history.