BudH

Profiting from the Tapped Out Consumer

"Consume ourselves rich" nice turn of a phrase there. But also misleading. We live and work to consume and provide. In econ 101 the prof said there were 3 segments to the economy; consumption, investment and government. I think Government is now over 30%, Investment they are saying now is too high with the savings rate way up over normal times. Consumption as a segment of the economy is down. Particularly as compared to past years when we were pulling $ from our homes and spending.

This higher savings rate will come out in future spending in the consumer economy.