Reuters: Consumer Spending Rebounds Sharply

[ProgressiveOne]

Excerpt:

WASHINGTON (Reuters) - U.S. consumer spending rebounded sharply July, government data showed on Monday, erasing the disappointment of June and bolstering hopes that the U.S. economy has recovered from its recent soft spot.

Link: Consumer Spending Rebounds Sharply

[mac56]

1. "Recent soft spot"?!

Laughing to keep from crying.

[ixion]

16. yep, that was my thought too

right there with ya...;-)

[Warpy]

2. Back to school!

Of course it rebounded, kids need clothing and shoes, not to mention notebooks and other gear. It'll drop again when the kids are in school in clothes and shoes that fit them.

People are not spending a dime they can avoid spending. If they have decent jobs, they don't know how long they'll have them before India grabs them away. It's scary out here in workday world.

That broken record ad in an empty factory is the best thing the Dems hae done yet. The last week of every month for 3 solid years, the Bushies have been crowing that we're in an economic recovery and that good times are here again.

[rangerfan]

4. Don't know if it was all due to school starting. In July we bought

a new house and furniture. More furniture this month and new car most likely by the end of the year. At least for the rangerfan family things are looking up.

[Doctor Smith]

6. Did you buy it, or did the bank buy it for you?

[rangerfan]

11. Mortgage company with a big down payment. 3/4's of the

furniture was cash.

[Ripley]

8. Well thank the baby Jesus for that!

I mean the country's economic health is solely gauged by the rangerfan family. Who gives a rat's ass about the majority of Americans, he's got his. :eyes:

[rangerfan]

12. No one likes a smartass. What about all the other houses being

built and sold in our subdivision. I sure as hell ain't buying 'em all.

[Ripley]

13. Your post sounded pretty smart ass.

So no one likes you?

You are gloating (if truthful we'll never know) that you have or will buy a new house, new car and all the furniture in the house. Well goody for you. And goody for me I could fly to Hawaii for a vacation. But that doesn't mean I think the whole country is doing well. No, just the opposite. Poverty up. Uninsured up. Grocery/utility/insurace costs up.

Your post trivialized the situation of millions of Americans. Many who have gotten jobs took 1/2 the pay or 1/2 the benefits they had before.

So gloat on bud.

[rangerfan]

14. Stop whining. Things are getting better, more people are going

to work. There is more construction going on around the DFW Metroplex than I have seen in years. Pull you head out of the doom and gloom sand and look around. Must be a pretty sad life for you not to realize that this economy IS doing better regardless of what you want to whine about. Go cry in your beer some more.

[aneerkoinos]

18. I won't

Spending up 0,8%, income up 0,1%.

But I promise I won't laugh at you when your compulsive consumerism kills you under your debt load, and the planet on the side. No, I won't laugh.

[rangerfan]

20. My compulsive consumerism?? What debt load??

Some of us can actually manage our finances (been doing it for almost 40 years now). Your pessimism is staggering.
Unemployment rate in July is at 5.5%
(Full employment used to be noted at 6%)
Payroll employment in July is up 32,000
The economy has added jobs for 11 months in a row totalling nearly 1.5 million.
Average hourly earnings in July is up +$0.05
Productivity in 2d Qtr of 2004 up 2.9%
Employment in the construction industry has been up every year for the last ten years.

[nolabels]

21. If you watch how trees grow, you will see how good years and bad years....

Effect their growth. Some trees even grow to weather this type of problem better. During the good years growing their roots deep and abundant in anticipation of different times.

A wise person would pare down their debt and put money to work for them for such times also. Taking advantage of todays low interest rates will serve anybody well(except bankers). Not picking up additional debt and putting any that one has into low interest loans makes sense



Debt, Demographics, and Telecom


This analyst, a boomer and long-time believer in the consumer society, is starting to twitch in concern over how long the consumer economy can last. With the financial markets approaching the end of the 3rd year of the bear market, and with a lot of uncertainty over what will happen -- and when -- with Iraq and North Korea, consumer confidence has fallen precipitously.1 There is some indication, however anecdotal, that consumers are slowing the pace of spending, even if only temporarily.

Much wealth has been lost, wealth set aside for college tuition, retirement, travel, and health care. Given that at least paper wealth is significantly diminished, what about the flip side, something more real, the growth of debt: household, business and government? This is pertinent for several reasons:

* First, consumers have yet to abandon housing and the mortgage is the biggest component of household debt. Despite a drop in confidence, house buying is still relatively strong. The obvious issue is that the trend in house buying has been to reduce the size of the down payment in percent terms. Even with low interest rates, more income goes to mortgage debt service. Total mortgage debt is about $5.8 trillion, close to 20% of all debt in the U.S.

* Second, beyond housing mortgage debt, the growth in debt of all types has been huge and current account deficits in all levels of government will push the debt load up even further. The U.S. government deficit is rising quickly and as a matter of fiscal policy, it may or may not be a good thing. Our point is only that the federal deficit is accompanied by huge shortfalls at the state and local levels, and budget cuts are not keeping up with spending. Thus debt grows.
(snip)
http://www.boardwatch.com/document.asp?doc_id=29533&site=boardwatch

edit: typo-syntax

[aneerkoinos]

25. Plural you. Americans. n/t

[NickB79]

27. Just one point on job growth

"The economy has added jobs for 11 months in a row totalling nearly 1.5 million."

The economy has to add ~150,000 jobs per month just to keep up with population growth. That means that for an 11 month period, we need 1.65 million new jobs added just to keep up. So why is adding only 1.5 million jobs considered a positive thing?

[rangerfan]

29. "So why is adding only 1.5 million jobs considered a positive thing?"

The unemployment rate has been dropping steadily since June 2003 when it was 6.3%. If it continues to drop at even that modest rate unemployment will be below 5% by next summer. After 11 months of reduction it appears that it may be sustainable and that can only be considered a positive thing.

[NickB79]

31. It would be nice if the unemployment rate were accurate

Too bad that the main reason it is dropping is not that people are finding new jobs, but that their unemployment benefits are running out and they are simply no longer counted as part of the workforce anymore. At that point, they disappear from the unemployment numbers, and they become artificially lowered because of it.

How can we be seeing lower unemployment rates when we are falling short of the number of jobs produced just to stay even with population growth by hundreds of thousands, much less recreate the 3 million jobs lost in the past 4 yrs?

[robcon]

40. The unemployment rate has nothing to do with eligibility for insurance.

Usually fewer than half of the people who are unemployed are collecting unemployment insurance.

The rest:
ineligible for insurance - little job experience (especially teenagers)
expired unemployment insurance
never applied for unemployment insurance (usually short term layoff)

Eligibility or expiration of unemployment insurance has nothing to do with being counted as unemployment.

[nolabels]

45. Here is another post from someone else.

It kind of gets to you after awhile It's kind of funny we don't hear too much how Bill was such a bad guy anymore. Where are all them Hubble factors and Whitewater operatives?


Quote:
Originally Posted by HappyMan
What numbers?

Clinton inherited a national unemployment rate of 6.6%
When he left office he had brought that down to 4.0%

GW Bush inherited a national unemployment rate of 4.0%
Presently it stands at 5.6%.

These numbers encompass all workers 16 years old and older in America. Source: US Bureau of labor statistics (http://www.bls.gov/data/)

It's also common knowledge that Clinton left us with a projected budget surplus, and Bush now has us staring at the largest projected defecit we've ever seen.

So there you go; the Bush economy has failed domestically, terrorist attacks have risen under his watch, he's done no great works internationally other than invading a country that posed no real threat to us . . . his presidency is a wash. Both at home and abroad George W. Bush is a failure of enormous proportions.

-HH
(snip)
http://www.marijuana.com/420/showthread.php?t=31612&page=1&pp=10

Freepers go home

[Media_Lies_Daily]

37. Good lord! There really ARE people that swallow the NeoCon hook!!....

How many people simply stopped looking for work, and how many people are no longer counted as unemployed because they've used up all of their unemployment benefits? Three million? Four million? Six million?

Think about it the next time you tell someone to take off the blinders...that "someone" may be you that you're seeing in a mirror.

[rangerfan]

41. "How many people simply stopped looking for work, ..."

and how many people are no longer counted as unemployed because they've used up all of their unemployment benefits? Three million? Four million? Six million?"

You got a reference for that number? Or is it simply hysteria?

[Javaman]

49. If you want numbers, contact any homeless organization...

Over the period of 3 years, the totals that various homeless shelters and homeless charities have shot up. They are being stretched to the limit and any help that was promised them from prez moron has been cut.
Since you like to live your comfy life and not go out and actually see people living on the street and continue to live with blinders on. Continue on your merry way.
And since you think you have managed your money so expertly, just wait till China's economy takes a nose dive from there over heated economy and they start calling in their
T-Bills worth to the tune of 1 trillion dollars. You think you have managed you money wisely, just wait for that to happen, because it will and then you will be singing a different tune. Oh and while you are living this happy fantasy, just remember who aloud china to get those T-Bills, prez moron, he had to get money some how to pay for his war.
Give that a thought for a while. Borrowing from Paul to pay Peter. Yup gotta love the deficit.

[Media_Lies_Daily]

33. Besides the media & the NeoCons, you must be the only other one...

...seeing the hallucinations you're describing.

[Javaman]

48. Tell me where people are getting work, I live here in texas and there

a damn thing around here.

I would like to smoke some of the dope you are on.

[Supply Side Jesus]

55. A typical 'I got mine, so fuck you' mentality.

and your posts smell a little funny.

[arlib]

38. No one on this board...

...likes a smug twit with GOP talkng points either.:evilgrin:

[zoeybug]

10. Thing are looking up for our family as well.

I'm back to work after not being able to find anything for over 2 years. (I'm in retail IT.)

Still I have several friends who have been out of work for a long time, and still haven't found jobs. I'm hopeful that things are really starting to get a little better, though.

I'm a consultant, and I think we are the first ones laid off when companies start to cut costs. And consultants are the first back to work as well, when companies are optimistic, but not yet willing to risk hiring a permanent employee.

[llmart]

23. Just because your personal situation looks good......

doesn't mean the majority of the country's is. Just three days ago we were told about the enormous jump in poverty. However, you are not unique in your perspective. Most Americans today only care about their own personal situation and their own little worlds. I just saw statistics on CNN that said in Michigan, Ohio, Indiana and Pennsylvania foreclosures were at a record high. Does that speak to you of a booming economy? Oh, I suppose all those people were just too stupid with their finances - that it wasn't the fault of the loss of jobs. And all those jobs that you think are being created are $8 per hour jobs, or temp jobs, or part time jobs, but they sure and hell are good-paying, secure jobs which no longer exist.

[rangerfan]

24. Funny, but where I work (in an industry hardest hit by 9/11)

we were just told our hiring is going way up we've already hired many new engineers (hint: we don't flip hamburgers here). In fact we'll soon need new office space, our corporate HQ has run out of room already. But then I guess it's all just a figment of my imagination, just like 11 straight months of increasing employment numbers. Don't be so pessimistic, take the blinders off and look around. But then I suppose the best thing about being a pessimist is that you're never disappointed.

[They_LIHOP]

30. Go ahead and say it...

"... and it's ALL, OBVIOUSLY due to President Bush's incredible stewardship of the economy! Thank GOD for His Tax Cuts, otherwise the Clinton recession of 2000 would probably just have gotten worse!"

Why don't you just say it? You know you want to...

And then you can explain to how the excellent economy under Clinton was due to every factor OTHER than Bill's stewardship, the tax rate, etc.

By the time you're then asked to explain the wholesale difference in your assessment of responsibility of the president in shaping the economy between the years 1992-2000 and 2001-2004, you'll already have gotten yourself tombstoned, so, you might as well go for it ...

After all, we DU'ers REALLY (no, really) don't get enough of the RNC's talking points everyday through the mainstream media, so it's nice to come here to DU and see them shared with us some more by well-off Texans who are benefitting from having a President, Vice-President, and House Majority Leader all from their state!

So down there in Texas, things are great for you ... Whoopdee-f*cking doo! Probably hasn't even occurred to you that your state may be receieving preferential government treatment at the expense of the rest of us, has it? No, that wouldn't, because that is not how your mind operates, is it now?

Anyways, enjoy your stay here at DU ...

[rangerfan]

42. Actually our corp hq is in Iowa along with the majority of our employees.

They're looking to move some out because they're running out of room. I don't think any of the improvement in our business is due to the President, just good business practices and aggressive pursuit of new business.

[Javaman]

50. if your company is doing so well...

Why don't they hire some of those people from the record poverty level? It's gone up 3 years straight and the gulf between rich and poor has increased.

Do you know what a white russian is? Russia was filled with them before the revolution. Virtually none after...

Nothing like living with your head in the ground.

[llmart]

32. There's a big difference between being a pessimist.....

and being a realist. As I said before, just because your own personal situation and your own little world looks rosy, doesn't mean it's true for the majority of America. You're the one who needs to take the blinders off. If you'd like, come visit the SE area of Michigan where there aren't any new jobs - just non-union, low-paying jobs.

[Media_Lies_Daily]

34. It's called "pork" in some circles, particularly during an election year..

...let's see what happens to all of your good tidings when the elections are over and Greenspan starts jacking up the interest rates.

[PassingFair]

51. Betcha rangerfan is designing and/or building

weapons of war! That's the growth industry around the rustbelt. Automotive down or OUT and War Machine UP.

[jackieforthedems]

47. I Know Back To School Was

the only reason I was out shopping in July and August!

[Zynx]

3. It was a large increase in auto sales, however, August is shaping up poorl

y. Also, you should note that personal income did not increase by very much at all. .1% doesn't even keep up with inflation.

[UpInArms]

5. looks like it was

spending on credit - the difference between income and spending was .7% - that report comes out next week (on 9/8)

then we can look once again for the trade balance to increase - that report comes out on 9/10

[Tandalayo_Scheisskopf]

7. How much of this was due...

To increased costs of energy? Substantial, I would posit.

[ProfessorGAC]

9. That's Probably Part Of It

The increases in retail prices that are finally reflecting the higher cost of shipping to each store is likely to kick in about 6 months after the first gas price spikes.

That's seems about right, to me. It seems like around early March that gas prices first shot up, but i'm not completely sure.

Also, this is back to school time, so spending always spikes a little at this time. I'm not convinced this is a meaningful change in consumption.
The Professor

[nolabels]

17. Anybody who believes this current Government statistics is surely a fool

The numbers are probably a statical blip or this months monthly revision of rules compiling figures. Every month the feds come out with some new 'Good News' only later with some back page mea culpa on how they made a mistake on compiling the figures. I would even be willing to bet after figuring real inflation, that the economy is taking a major hit. With crooks running the government for other crooks that want to steal everything (legally, of course)what would one expect them to come out with ?

The articles says:
Personal spending rose 0.8 percent, more than making up for a revised 0.2 percent fall in June, the Commerce Department said. The improvement in consumption was actually even larger since June's spending had been initially reported as a 0.7 percent decline.

But personal income advanced at a more modest pace than expected, posting a 0.1 percent rise compared with a 0.2 percent gain the previous month. July's advance was the weakest reading since November 2002.

Dow Jones Industrial Average
10,170.61 -24.40 / -0.24%
Open: 10,193.83 YTD % Change: -2.71%

High (day): 10,196.78 High (52wk): 10,794.95

Low (day): 10,165.96 Low (52wk): 9,199.43

Volume: 55,774,073.00 Last Close: 10,195.01
(snip)
http://money.cnn.com/markets/dow/

[dansolo]

19. Just in time for the convention

Now the GOP can talk up the economy in their speeches.

[bobbyboucher]

15. The eocnomy sucks, no amount of lipstick cand dress up

this pig.

[A_Possum]

22. A catastrophic success

Amusing.

Up is relative. Up from where? I've seen this headline at least 5 times this year so far.

[cspiguy]

26. yeah, on GAS!

2.05/gallon

[ItsMyParty]

28. Bloomberg News just minutes ago

mentioned that this was the greatest increase in a long time in consumers spending way, way more than they were making. In other words, yes, they had to get the kids to school/college, etc. and it's all on the plastic card. My home is bought and paid for (and my furniture and car, too--for the dude above) but I'm not spending a dime more than I have to, we are not doing a lot of the things we did before, etc. and we have not been unemployed nor are facing unemployment. As consumers keep being very reluctant to spend, those who have jobs and have run out to buy, buy, buy, may find their jobs going bye, bye, bye and that's where the house, the car and the furniture will end up, too!!! Daughter and husband built a beautiful new home in a new subdivision that was selling lots and building like hotcakes just over the last year---and now the "for sale" signs are popping up all over the very yuppie neighborhood. Asked why and she replied, "one or the other of them lost their jobs".........yep, we're turning a corner.

[llmart]

35. My situation is very similar.....

to your. Husband and I have absolutely no debt - house and two cars are paid for. Even though we both have jobs (mine is only part time), we have seen a serious decline in our standard of living. My husband is an engineer and hasn't had a raise since the Idiot-In-Chief took office. Also, his company didn't match the 401K for three years, and now they match but a much smaller percentage than they ever did. He also has to work free overtime for the first time in his career (35 years). So tell me again how great the economy is under Bush? We don't spend anything we absolutely don't have to. And now the idiot wants to reduced our Social Security and Medicare because he's squandered the surplus that President Clinton left him.

[Mr.Green93]

36. Many go on spending sprees before filing bankruptcy.

[otohara]

39. Back To School

no choice - shit the cost of teen jeans are astronomical -

[shanti]

43. refinancing

is fueling the jump, if any...IMO.

[nolabels]

44. Just talking up the bushco economy d:vO

Booming Bush Economy . . . right?
The entire, lengthy article can be found at: http://www.reuters.com/financeNewsA...storyID=5816498
Quote:
WASHINGTON (Reuters) - First-time claims for U.S. jobless benefits last week held at a level suggesting an improving labor market but wage growth over the past year has dragged along at its slowest pace in over 20 years, government reports released on Thursday showed.

Wages and salaries rose a slim 0.6 percent in the second quarter and are up just 2.5 percent over the past 12 months, matching the period through March as the smallest 12-month gain on records dating to 1982, the Labor Department said in a report offering fuel for an election-year debate over jobs.

In a separate report, the department said initial claims for state unemployment insurance -- a rough guide to the pace of layoffs -- rose just 4,000 to 345,000 last week. Economists generally view claims below the 400,000 level as indicating an improving job market.

Remeber that when you're going to cast your ballot. George W. Bush has presided over four years of poor economy, his cavalier attitude about warfare (from a guy who couldn't be bothered to show up for his own duty) has alienated our world allies, and his big accomplishment this year has been trying to write his religious/political agenda into our Constitution by banning gay marriage (as if the Constitution is an appropriate place for such a thing).

He's a failure in both foreign and domestic policy. He is a disasterous president; intellectually lazy, moody, unimaginative, and abrasive. No one needs four more years of this monkey.

(monkey reference added for the benefit of NS)
(snip)
http://www.marijuana.com/420/showthread.php?t=31612&page=1
(72 posts)

Lookee hear folks, If people that fire up a few bowls think cash is flowing slowly,
what does it mean for us people traveling around at normal rates :hippie:

[savistocate]

53. Another Post--Stocks dip on Consumer Income

Report..yahoo news.

[nolabels]

54. I tell ya, I am just sick of Merry -go - rounds

In looking through some cartoons from a decade ago, I was surprised to find so many parallels between Bush administrations. The economy sucks, we're at war and even threatening war with Iraq again. It's one big rerun.
(snip)
http://politicalhumor.about.com/gi/dynamic/offsite.htm?site=http%3A%2F%2Fwww.toostupidtobepresident.com%2Fpen_and_ink%2Fbush_91%2F90s_index.htm

[AmandaRuth]

46. didn't read the whole post, but here is what is going on where i am

i work in a small retail shop - 3 emloyees, counting myself

1 manager is in bankruptcy as she lost her roommate/so, and could afford her house payment, to save her house she had to go into bankruptcy

2nd assistant manager - just lost her house, had a high paying job, co closed, had to take this much lower paying retail job. She is married with 2 children, both work, between the 2 incomes they couldn't make the house payment which was approx. $1,400 a month. They are now renting, and she just confided to me that she doesn't believe she will ever own her own home again.

this is all true, rangerfan

[nolabels]

52. Some people just don't understand

Even though things are terrible for many people some are able though through the grit of their teeth and sheer determination able to keep hold of a job. Not that I am saying they are any better, it's just some might have considered not having a job a crime against themselves.

Just like you explained full well even if they have to cut their income to a fraction of what it was they will do it just to have a job. I would fit that picture if I lost the job that I have now. That's if jobs for truck mechanics weren't so plentiful.

The death Neel for many of these politicians is going to be when the real crash comes and the population realize they let every industry the US ever had be shipped over seas. At that time we will not be able to pick our selves up anymore, because we don't really produce anything anymore (except War machines and agriculture).

I bet we will be helpless, just like sitting ducks. We will have to fight endless wars for our corporate masters, to which we are indebted to for enormous sums. Yep, America got screwed in most ways by the Republicans. Of course I am just a pessimist you understand.


Magazine: U.S. Soldier Says Torture Encouraged
Sun Aug 29, 2004 07:19 AM ET

BERLIN (Reuters) - A U.S. soldier expected to plead guilty to charges of abusing Iraqi prisoners told a German magazine he deeply regretted his actions but said the abuses were encouraged by military intelligence services.

Staff Sgt. Ivan Frederick told the weekly Der Spiegel conditions in Baghdad's Abu Ghraib jail were a "nightmare" with no clear line of command and conflicting demands placed on junior soldiers with insufficient training.

"I didn't know at all who was actually in charge," he said, according to a German translation of his remarks.

"The battalion wanted one thing from you, the company wanted something else and the secret service had their own ideas. It was just chaos," he said.

The abuse and torture of Iraqi prisoners in Abu Ghraib caused worldwide outrage when photographs of the incidents emerged earlier this year
(snip)
http://www.reuters.com/newsArticle.jhtml;jsessionid=KKKYHWCBKU3A4CRBAEKSFFA?type=topNews&storyID=6096014
http://www.antiwar.com/

[The_Casual_Observer]

56. This is of course a feeble plant story courtesy of the

ministry of information. Funny how these threads never fail bring out a newly minted freep or two who insist that prosperity is right around the corner.

[porkrind]

57. "Consumer Spending Rebounds Sharply"

At least until they revise it down next month on a Friday in the middle of the night.