Tick tock
Digging Your Personal Hole
The government's latest "Personal Income and Expenditures" report is out today. The blah-blah goes like this:
"Personal income increased $60.2 billion, or 0.5 percent, and disposable personal income (DPI) increased $63.9 billion, or 0.7 percent, in July, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $78.7 billion, or 0.8 percent. In June, personal income increased $60.0 billion, or 0.6 percent, DPI increased $47.8 billion, or 0.5 percent, and PCE increased $36.6 billion, or 0.4 percent, based on revised estimates."
Sounds peachy, so far, right? Well, read on and you'll see where it sucks - I've added a highlight so you can see it clearly through your personal morning fog:
"Personal outlays -- PCE, personal interest payments, and personal current transfer payments increased $79.7 billion in July, compared with an increase of $41.0 billion in June. PCE increased $78.7 billion, compared with an increase of $36.6 billion.
Personal saving -- DPI less personal outlays -- was a negative $83.5 billion in July, compared with a negative $67.6 billion in June. Personal saving as a percentage of disposable personal income was a negative 0.9 percent in July, compared with a negative 0.7 percent in June. Negative personal saving reflects personal outlays that exceed disposable personal income. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods.
So, there you go. The harder you work, the behinder you get. It's the corporate thing. So, stop reading and start digging that personal financial hole, would you?
pimco.com |
