Continue reading Consumer Spending Stalls Out in April

Consumer Spending Stalls Out in April originally appeared on BloggingStocks on Sun, 30 May 2010 09:00:00 EST. Please see our terms for use of feeds.

According to the Commerce Department, consumer spending increased in March by the largest amount in five months.

Consumer spending increased 0.6% in March, which matched expectations. While this is the good news, the bad news is that the gains appear to have been driven by a depletion of savings, which dropped to the lowest level in 18 months. The personal savings rate fell to 2.7% of post-tax incomes, the lowest level since September 2008. Personal incomes increased a mere 0.3%, which presents concern about minuscule income growth.

Continue reading Consumer Spending Logs Largest Increase in Months as Savings Dwindle

Consumer Spending Logs Largest Increase in Months as Savings Dwindle originally appeared on BloggingStocks on Mon, 03 May 2010 11:20:00 EST. Please see our terms for use of feeds.

Wells Fargo (NYSE: WFC) announced on Thursday that it will eliminate fees on customer overdrafts of $5 or less and is going to limit overdraft charges to a maximum for four per day.

This move follows similar moves from other large banks, prompting some to ask what took so long. In addition, Wells Fargo customers will be allowed to opt out of automatic overdraft coverage. Doing so would mean that debit card and ATM transactions would not be allowed to go through if your account is overdrawn.

Continue reading Wells Fargo to eliminate overdraft charges

Wells Fargo to eliminate overdraft charges originally appeared on BloggingStocks on Thu, 24 Sep 2009 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Under the radar: U.S. savings rate rises to 5.7%, a 14-year high

Under the radar: U.S. savings rate rises to 5.7%, a 14-year high originally appeared on BloggingStocks on Wed, 03 Jun 2009 18:30:00 EST. Please see our terms for use of feeds.

General George S. Patton was attributed with saying: "No poor bastard ever won a war by dying for his country. He won it by making other bastards die for their country." This was played out to perfection by George C. Scott in the Oscar winning 1970 movie 'Patton'.

I feel the same way when I hear and read about how we need to spend more to revive the economy. You should let the other poor bastard spend for his country -- you should be saving!

Reuters reported earlier in the month that consumer spending continues to fall and savings are increasing. That's a good thing. The public gets it, the government does not.

e won it by making the other poor dumb bastard die for his country."
- Attributed to General George Patton Jr

Continue reading Ignore Washington -- keep saving; General Patton makes a point

Ignore Washington -- keep saving; General Patton makes a point originally appeared on BloggingStocks on Thu, 26 Feb 2009 14:15:00 EST. Please see our terms for use of feeds.

Continue reading A bright side of the recession: Piggy bank sales are rising

A bright side of the recession: Piggy bank sales are rising originally appeared on BloggingStocks on Fri, 02 Jan 2009 13:19:00 EST. Please see our terms for use of feeds.

In case you had not noticed, the brokerage industry, whose survival depends on keeping you in stocks and mutual funds, has a well-rehearsed series of talking points designed to keep them in business by siphoning fees and commissions from you.

Now that stocks have lost 40% of their value in the last year, they are trying to convince you not to panic. That translates into 'don't sell' -- and 'stocks are a bargain now so buy, buy, buy'. I've suggested that people who need their money in the next six years should use yesterday's 11% rise to cut their losses in stocks and put their money somewhere safer like an FDIC insured bank account or a money market fund.

But the financial services industry doesn't want you to do that since the profits from such a move would be small. So they will try to convince you that putting money into a bank account puts you at an enormous risk of falling behind inflation. But let's take a look at reality. Earlier this year, I was paying $4.20 a gallon for gasoline and today I can pay $2.63 -- that's not inflation, it's deflation.

Continue reading Can your bank account keep up with inflation?

Can your bank account keep up with inflation? originally appeared on BloggingStocks on Wed, 29 Oct 2008 12:25:00 EST. Please see our terms for use of feeds.

Continue reading The Bush Administration's tax cut didn't increase investment and savings

The Bush Administration's tax cut didn't increase investment and savings originally appeared on BloggingStocks on Mon, 08 Sep 2008 11:40:00 EST. Please see our terms for use of feeds.

Continue reading The world's millionaire list hits a milestone

The world's millionaire list hits a milestone originally appeared on BloggingStocks on Wed, 25 Jun 2008 16:15:00 EST. Please see our terms for use of feeds.

Continue reading Naked Truth Investing: Has Morgan Stanley seen the light?

Naked Truth Investing: Has Morgan Stanley seen the light? originally appeared on BloggingStocks on Mon, 09 Jun 2008 17:15:00 EST. Please see our terms for use of feeds.

Naked Truth Investing: A good idea, poorly executed. originally appeared on BloggingStocks on Thu, 05 Jun 2008 12:14:00 EST. Please see our terms for use of feeds.

In another nod to a slowing economy, consumer spending slowed in January, while income growth sputtered as well. The Wall Street Journal reported recently (subscription required) that the Commerce Department said "personal spending rose 0.4%, but was unchanged after adjusting for inflation. Such spending was also flat in December and October."

It seems to be a perfect storm of sorts. Consumers are cutting spending as they face dropping home prices, high energy prices, tightening credit markets, and a more limited job market.

As consumers spend less, they may be forced to dip into the proverbial cookie jar and start spending rainy-day savings. The same article said, "Rising prices may be prompting consumers to dip into their savings. The personal saving rate fell 0.1% in January, repeating December's performance."

While economists and politicians debate whether the U.S. has dipped into a recession, consumers are already feeling the pinch.

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

Consumers now spent up, not pent up originally appeared on BloggingStocks on Sun, 02 Mar 2008 16:10:00 EST. Please see our terms for use of feeds.

Stung by the housing market correction, stagnant wage growth in certain job segments, above-average debt levels, and a slowing economy, Americans are saving more and using credit less -- a shift that some analysts argue is a cultural inflection point of sorts, with huge implications for the economy.

Economist Steve Affinito told BloggingStocks Tuesday that while The Times' interpretative report did not "cite a large enough sample size to meet my fancy," it nonetheless provided data points that support what macroeconomic indicators are saying about consumer choices.

"We know that the savings rate has increased in the last six months, and retail sales are sluggish, at best. Take these and combine them with much tighter credit terms for home equity loans and other credit and what you get is a pull back in purchases, particularly purchases on credit," Affinito said.

Continue reading Are U.S. consumers moving away from buying on credit?

Are U.S. consumers moving away from buying on credit? originally appeared on BloggingStocks on Tue, 05 Feb 2008 17:00:00 EST. Please see our terms for use of feeds.

The stock market's recent run-up in the face of concerns about a recession could be driven by the Federal Reserve lowering of interest rates.

Usually, rate cuts are seen as boosting economic activity down the road, and hence cause stock markets to rally. But the reason behind this recent run-up may be different. The Wall Street Journal reports [subscription required] that "Despite recession fears, slowing profits and signs the credit crisis isn't over, the stock market is attracting a new wave of buyers: investors who are escaping pricey, low-yielding bonds."

It's true -- a 10-year treasury note that yields under 3.7% is a pretty good incentive to dive into the stock market. With concerns about a weakening dollar, investors will be lucky if that 3.7% is anything after inflation takes its bite.

But a run-up that's driven by investors fleeing from bonds and savings accounts might not be sustainable, and certainly doesn't reflect a lessening of concern about economic weakness.

Yield-hungry investors fleeing bonds and savings accounts originally appeared on BloggingStocks on Fri, 25 Jan 2008 09:45:00 EST. Please see our terms for use of feeds.

With just ten more shopping days until Christmas, it's time for a stocking stuffer wish list. With the recent market selloff, bargains are abound. If you think the 15% off sales in your favorite department store are interesting, here are stocks that are REALLY on sale, and would make the perfect stocking stuffer.

For American Express (NYSE: AXP), the shopping season is going better than all the pessimists thought it would and the credit card company should stand to gain. In addition, since the market tends to be a leading economic indicator that looks out six months into the future, I would expect a strong pickup in growth in the second half of '08, which should also help earnings. With this stock trading down to levels not seen in 15 months, the stock is looking attractive for a turnaround.

ClickSoftware (NASDAQ: CKSW) is the leading provider of mobile workforce management and service optimization solutions. With mobile applications just starting to come online into the market, this company could be a real winner. This stock isn't for the weak of heart, having dropped 43% from the 52 week-high. That being said, business is shaping up to be really strong for '08.

Continue reading Yo Santa: Stuff my stocking with these three stocks

Yo Santa: Stuff my stocking with these three stocks originally appeared on BloggingStocks on Fri, 14 Dec 2007 14:54:00 EST. Please see our terms for use of feeds.

Continue reading Greenspan says globalization a factor in housing bubble

Greenspan says globalization a factor in housing bubble originally appeared on BloggingStocks on Fri, 14 Dec 2007 13:22:00 EST. Please see our terms for use of feeds.

The dollar rose to one-week highs against the world's major currencies Wednesday, as currency traders took profits following extensive dollar declines over the past 10 weeks.

Traders said Abu Dhabi Investment Authority's $7.5 billion investment in Citigroup (NYSE: C) contributed to the trading session's pro-dollar sentiment, on the belief that deep-pocketed, patient global investors may be able to provide capital to help keep key credit markets liquid in the quarters ahead.

The dollar improved to $1.4768 against euro, to $2.0681 against the British pound, and to 109.70 yen against the Japanese yen.

Currency trader Andrew Resnick, formerly of Next Capital of New York, told BloggingStocks Wednesday that the dollar's rise should not delude one into thinking there's been a fundamental change in currency conditions:

"I see nothing changing structurally. We've got the U.S. trade deficit, a slowing U.S. economy, and the possibility of another rate cut by the Federal Reserve, so pressure will resume on the dollar," Resnick said. "We may not see as many players in the carry trade, but the long-term bias remains dollar-lower."

Continue reading U.S. dollar rises against major currencies

U.S. dollar rises against major currencies originally appeared on BloggingStocks on Wed, 28 Nov 2007 12:35:00 EST. Please see our terms for use of feeds.

Continue reading Is the U.S. in a 'growth recession'?

Is the U.S. in a 'growth recession'? originally appeared on BloggingStocks on Wed, 21 Nov 2007 18:27:00 EST. Please see our terms for use of feeds.

Continue reading Rogers sees more dog days for US dollar in 2008

Rogers sees more dog days for US dollar in 2008 originally appeared on BloggingStocks on Mon, 05 Nov 2007 17:57:00 EST. Please see our terms for use of feeds.

• FDIC insurance covers $100,000 of your money with each bank. To avoid the potential for stress (being a creditor in receivership is not a lot of fun), avoid putting more than $100,000 with any one bank. With high-yield savings accounts from banks including EmigrantDirect, E*Trade (NASDAQ: ETFC), Capital One (NYSE: COF), and ING (NYSE: ING), you should be able to find enough banks to spread out your savings, unless your last name happens to be Rockefeller.
• Already, a well-meaning friend who works at a bank told me about the NetBank meltdown, and explained that "These high-yield savings accounts are very risky. It's much better to go with a brick and mortar bank, even if the interest rate is 1% instead of 5%." Many retail banks will start trying to use that logic to trick customers into saving with them. It's a bunch of crap! Never trust your bank!

FDIC shuts down NetBank originally appeared on BloggingStocks on Sun, 30 Sep 2007 09:10:00 EST. Please see our terms for use of feeds.