Thrifty families accused of prolonging the recession – Times Online.
Anxious families are repaying debts instead of spending in the shops, amid concern over the uncertain economic outlook. The share of income saved in banks and building societies has risen to its highest level in more than a decade, heightening fears that faltering consumer demand could prolong the recession.
The savings ratio — the gap between household income and spending, which is often used to repay debts or add to savings — soared to 8.6 per cent between July and September, the highest level since 1998.
Analysts fear that consumer spending, which rose by 0.1 per cent in the third quarter, its first growth since the start of the recession, will remain muted as households continue to repay debts and save.
This is what is referred to as the paradox of thrift. Now, I have heard everything.
December 24, 2009 at 10:34 pm
“Analysts fear” – Thank goodness people are wising up to these so-called analysts. This thing is FAR from over. Anybody with half a brain can figure out that Congress is spending like a drunken sailor…
And one other thing, too – most people can see through this health care “reform” fiasco as well. This is another way – a PC way, if you will – of saying toughski shitski, here’s your tax increase whether you like it or not. Except we’ll call it something else because we’re a bunch of chickenshit Democrats….
There I go – cursing and swearing on McNorman’s blessed site – right before Christmas. But I’ll tell you one thing for sure – I know who’s gonna get switches and ashes tonight. Btw, is he in Hawaii yet…? Is it safe to come outdoors yet…?
December 24, 2009 at 10:53 pm
That’s right NNIC, switches and ashes for the One tonight. Add a mountain of coal to that as well. He should be in HA by now. Yippie…we can all come out now.
December 24, 2009 at 11:33 pm
Are there any volcanos in Hawaii due to blow soon??
BTW, didn’t congress just pass a bill in the amount of right around $300B so they could keep up their wild spending? Or, was it my imagination.
“Say What You Will…It Feels So Good”
December 25, 2009 at 12:32 am
Yes, there is a volcano ready to blow in HA. Will the Gods hear our pleas? Yes, they added more to their credit card limit.
December 25, 2009 at 9:47 am
Where’s a good hungry Pacific shark when you need one?
December 25, 2009 at 5:45 pm
Not where it should be Mary
December 25, 2009 at 4:08 pm
the only paradox is why Wall Street hasn’t been set on fire. In a way completely unrelated to mobs of angry thrifty people, of course
.
December 25, 2009 at 5:47 pm
Distraction Nom. He should have dressed them all in Santa hats.