Here we go again! Consumer spending outruns paychecks.

[Zalatix]

First to take the hit is savings. Next? Credit cards.

http://www.huffingtonpost.com/2012/03/30/consumer-spending-february-income-growth_n_1390931.html

WASHINGTON — U.S. consumers boosted their spending in February by the most in seven months, raising expectations for stronger growth at the start of the year.

Americans spent more even as their income barely grew. To make up the difference, many saved less.

Consumer spending rose 0.8 percent last month, the Commerce Department said Friday. The biggest increase since July coincided with the best three-month hiring stretch in two years.

[Common Sense Party]

1. Come on, people. Don't get stupid again.

Spend sensibly, live within your means, recycle, re-use, and stay out of debt. Don't let the banks get rich off your poor decisions.

[Zalatix]

2. Well, if enough people go into debt it could bring the system down.

Stability helps the rich more than it helps the poor.

[2ndAmForComputers]

3. At this point, I'm starting to think, in some situations...

...renting may be a smart strategic decision. The bank can't force the landlord to kick you out if you keep paying the rent.

[Zalatix]

4. They can convert the property to homes/condos.

I've seen it happen a few times before the big bust.

[MadHound]

5. This has been an ongoing problem for years and decades now

The reason, because real world wages have been declining for the past forty years in this country.

[Initech]

6. So when does the revolution start again?

[DJ13]

7. It could also be said

"Consumer paychecks arent rising enough to match inflation"

[earthside]

8. I'm sorry ...

... but I think this 'recovery' is going to be short-lived.

I think there is pent-up demand, folks are tired of scrimping so much and they've decided to spend some of the savings, maybe charge a bit more.

Once people have not got a needed raise, when the health care insurance premium goes up and school fees and college tuition comes due in August, well, the spending will stop and the recession will resume.

Plus I think that the coming election campaigns are going to be so ugly and mean that a lot of Americans are going to be disgusted and depressed ... not an inducement to more confidence.

[Live and Learn]

9. Tax Refunds? nt