Bush Stats on "savings" counts new borrowings as new savings

[papau]

Savings up as spending increase down as income rises -

seems reasonable until you note that "savings " counts new borrowed money as new savings!

http://www.bloomberg.com/news/economy/economies.html - <snip>The personal savings rate was 1.9 percent in February, up from 1.8 percent. The indicator weighs current income from wages, salaries, businesses and government payments against spending. It doesn't account for borrowed money, income from investments, or withdrawals from prior savings.

http://story.news.yahoo.com/news?tmpl=story&ncid=1504&e=6&u=/afp/20040326/bs_afp/us_economy - US consumer spending growth decelerates, hit by job fears -WASHINGTON (AFP) - American consumer spending growth -- the most powerful engine in the economy -- decelerated abrubtly in February as job fears gnawed.

People boosted spending by a seasonally adjusted 0.2 percent, less than half the gain predicted by private economists, the Commerce Department report showed Friday.

<snip>The Commerce Department report showed people's incomes rose by 0.4 percent in February, boosted by a 0.5-percent boost in wages. Incomes had climbed 0.3 percent in January.

<snip>Disposable income -- income after tax and other payments -- also rose 0.4 percent, after a 0.9-percent jump in January. <snip>

[havocmom]

1. same sort of accounting that lists loans as assets

you know, like ENRON did when it sold companies to their own brass, carried the loans themselves then counted the amount owed as current income.

Bean counters and corporate crooks running amok in America. Small investors and people who think they are putting money away for their old age are being screwed. Fat cats doing the screwing get the big tax breaks.

bye bye American Dream

[madrchsod]

2. hey count me in those figures

i borrowed 10,000 home loan put 5000 in "savings" thus i increased savings. the rest went for different purchases for the house-increasing the spending index. i borrowed and increased two indexes! i`m doing my patriotic duty by not showing up on the unemployment figures also. what more can i do for my country?

[papau]

3. I am proud to see you on this board - you are a statisitical hero!

and at least 100 points of the rise in Dow I attribute to you!

:-)