Americans Spending more with Income staying Steady...

 
Americans spending more with income almost flat

This article is exactly why we are a ways away from getting out of our current mess. Income is almost flat and Americans are spending more. Why is that happening when unemployment still is where it is and we are still spending like crazy and borrowing like crazy to finance that spending? This is exactly the opposite of what needs to be done. Yes, the article is right in saying that this is good for the economy but what it is missing is that this is good for the economy NOW, but not for the future.

One thing I find hard to believe is that this article directly says that it is because Americans are not getting any return on their money in savings...hmmm. Now that is a bunch of bologna. Americans are spending because they want to buy more stuff and they think the problems of a few years ago will be long gone soon. In addition, savings is definitely up from where it was earlier this decade and in the 1990s, but it still isn't where we need to be (10% or so).

Before you think we are out of this mess and spending more than you should is a good idea, pump the brakes and remember what life may have been like 3 years ago when the world economy was on the brink. How short our memory is, right?