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#1958921 - 09/03/14 04:05 PM St. Louis Fed says consumers are "hoarding money."
MyBrainHurts Offline
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Illinois
The St.Louis Fed explains low inflation is a result of consumers hoarding money. We used to call that "saving" and my parents told me that was a good thing. I'm currently hoarding every dollar I can, so that I can afford to retire someday.

http://www.cnbc.com/id/101963821

"households are sitting on $2.15 trillion in savings—about a 50 percent increase over the past five years."

"So why did the monetary base increase not cause a proportionate increase in either the general price level or (gross domestic product)?" economist Yi Wen and associate Maria A. Arias asked in the St. Louis Fed paper. "The answer lies in the private sector's dramatic increase in their willingness to hoard money instead of spend it. Such an unprecedented increase in money demand has slowed down the velocity of money."
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#1958924 - 09/03/14 04:12 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
Bankbb1, PITA Offline
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The Sovereign State Of Oklahom...
I dont suppose they have ever heard of thee term "Consumer Confidence"?
Lack of said term has been known to cause a similar reaction for about the last 3 - 4 thousand years or so.
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#1958929 - 09/03/14 04:16 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
DD Regs Offline
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Somewhere in the middle


Oh wait, who runs the "Feed the Pig" ads confused

Does advertising actually work.
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#1958935 - 09/03/14 04:23 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
Truffle Royale Offline

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Headlines touting the ultimate demise of social security 'for the public's own good' are surely not to blame for money hoarding either. smirk

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#1958937 - 09/03/14 04:28 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
Bankbb1, PITA Offline
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The Sovereign State Of Oklahom...
People are hoarding ammo and cash.....
and apparently Beanie Babies, cause I never see them anymore either!
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#1959006 - 09/03/14 06:25 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
TMatt87 Online
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Are they really trying to blame people for being responsible and saving money?
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#1959021 - 09/03/14 06:45 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
HappyGilmore Offline
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Pulling people out of the ditc...
they obviously have not looked at the spending patterns or habits of MsGilmore...

i hoard money, i put the max in 401(k) that our bank matches...put extra in Roth...have a savings account MsG knows about, one she doesn't, and also have some ready cash on hand that never sees the inside of a bank

i expect that when i retire i will live solely off my savings and 2 pensions, no expectation of social security, and i'm planning as such...so, if it is there, then great, it will just be extra income for me
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#1959024 - 09/03/14 06:50 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
manimal Offline
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::ponders building a vault under the new house::
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#1959036 - 09/03/14 07:10 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
Matt_B Offline
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I plan to live the last 25 years of my life much more excitingly than the first 25, so yes, I'm doing very similar to Happy when it comes to aggressive savings and retirement planning. I don't plan on any outside help, and I don't plan on working until I'm 80 either! I'm going to get out while I can still enjoy life.

My wife, I don't know what she's going to do. I'm not letting her live off my life's savings, that's for sure!
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#1959037 - 09/03/14 07:13 PM Re: St. Louis Fed says consumers are "hoarding money." Matt_B
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Originally Posted By: Matt_B
My wife, I don't know what she's going to do. I'm not letting her live off my life's savings, that's for sure!


I told my wife that ... she said she will get half of it one way or another crazy
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#1959041 - 09/03/14 07:17 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
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Somewhere in the middle
On our relationship, there is no Her Money My Money, it is all our money.
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#1959045 - 09/03/14 07:22 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
edAudit Offline
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edAudit
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You are here
in our relationship there is no money as she spent it all
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#1959048 - 09/03/14 07:24 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
Truffle Royale Offline

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I'm in a marital property state meaning what's mine is mine and what's his is mine. laugh

fwiw, I truly believe one of the secrets to a successful marriage is separate checking accounts. We each contribute the same percentage of our earnings to pay household bills. The rest is each our own to pay individual credit cards, play golf or buy shoes, etc. wink

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#1959051 - 09/03/14 07:25 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
edAudit Offline
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"Much of that liquidity, however, has sat fallow. Banks have put away close to $2.8 trillion in reserves, and households are sitting on $2.15 trillion in savings—about a 50 percent increase over the past five years."

Too Big To Fail Banks Have Paid $251 Billion in Fines For Sins Committed Since 2008

http://www.forbes.com/sites/robertlenzne...ted-since-2008/


Could it be that the banks are required to hold it and pay some to the same government that claims they are hording it?
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#1959076 - 09/03/14 08:24 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
Skittles Offline
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Leave Compliance? Can we actually do that?

My husband is just a couple of years from retirement. We're trying to sock it away in our 401(k)s, bought his childhood home and had it renovated - and plan to retire there. Our house will be paid for and I will continue to work - after I find a job - for awhile since I'm quite a bit younger. Hopefully our expenses will be greatly reduced.
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#1959081 - 09/03/14 08:32 PM Re: St. Louis Fed says consumers are "hoarding money." Truffle Royale
HappyGilmore Offline
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Pulling people out of the ditc...
Originally Posted By: Truffle Royale
We each contribute the same percentage of our earnings to pay household bills. The rest is each our own to pay individual credit cards, play golf or buy shoes, etc. wink


oh goodness...since MsGilmore teaches pre-K at a church school, if I had to rely on her contribution to pay bills we'd be living on the street...
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#1959086 - 09/03/14 08:38 PM Re: St. Louis Fed says consumers are "hoarding money." Truffle Royale
Matt_B Offline
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Originally Posted By: Truffle Royale
I'm in a marital property state meaning what's mine is mine and what's his is mine. laugh

fwiw, I truly believe one of the secrets to a successful marriage is separate checking accounts. We each contribute the same percentage of our earnings to pay household bills. The rest is each our own to pay individual credit cards, play golf or buy shoes, etc. wink


We maintain separate accounts and only commingle funds for household expenses (paying the mortgage basically, the rest of the utilities come out of my income, and she gets the groceries generally). I'm joint on a card with her, but I'm alone on all mine. So I can chip in on her expenses when her teeny tiny paycheck falls short of her big student loan payment, but otherwise it's easier this way. She likes to balance and track every cent, I don't give a carp, so it'd be a huge pain for her to try to track my spending if she had to laugh

Makes establishing a household budget tougher when things aren't aggregated, but meh. I know when she says "tighten the budget" she just means for me to give her more of my income to spend on shoes and purses. smirk
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#1959092 - 09/03/14 08:50 PM Re: St. Louis Fed says consumers are "hoarding money." Matt_B
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If the consumer doesn't save money, the government chides them for being profligate (yeah, I know, a little ironic) and relying too much on Social Security.

If the consumer does save money, the government chides them for "hoarding" money (in the government world, there is no such concept as "saving" money, so they have to find another word for "failure to spend"), and not fueling the economy.

The message seems to be: do what the all-knowing and always benevolent government tells you to do, you poor deluded consumer who can't be trusted to make any decisions.
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#1959141 - 09/04/14 12:21 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
Purple Pride Offline
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What ^^^^^^ said.

My wife is a stay at home mom so we only have joint accounts. Any money I make is not mine anyway, I am just a steward, so I have no issues with considering it "our" money.
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#1959142 - 09/04/14 12:23 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
DeeQ Offline
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Mine is mine and his is his. We share a small household account, and yes, I am hoarding my money.
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#1959145 - 09/04/14 12:36 PM Re: St. Louis Fed says consumers are "hoarding money." Purple Pride
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Originally Posted By: Purple Pride
Any money I make is not mine anyway, I am just a steward, so I have no issues with considering it "our" money.


Amen, brother!
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#1959151 - 09/04/14 12:58 PM Re: St. Louis Fed says consumers are "hoarding money." Sinatra Fan
Bankster Offline
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Whatever works for you is great. But just curious, for the people that say mine is mine and his is his, what happens if one of you loses his/her income? My wife has had two government jobs eliminated in the past four years, through no fault of her own. I can't imagine if we had separate accounts. Would she have to ask me for an allowance? That wouldn't seem right.

And I'm guessing you guys don't have kids, because we spend just about everything on them, or as a family. I don't spend much of anything on myself.

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#1959153 - 09/04/14 01:02 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
RR Becca Offline
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out of the frying pan...
We have 3 accounts - his, mine, and ours. Paychecks go into the joint account and we give ourselves a small allowance for mad money into each individual account after all the bills are paid and a chunk put into savings (yep, we're hoarders, too!). This prevents whining and pouting when he wants a new golf-something and I want something for the ponies. Actually - I pay nearly all the equidae bills out of my mad money...that way he can't use "your horses are too expensive!" in an argument. wink
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#1959154 - 09/04/14 01:03 PM Re: St. Louis Fed says consumers are "hoarding money." MyBrainHurts
#Just Jay Offline
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We have had everything joint since day one, I could never imagine separate accounts. Admittingly, I'd be too consumed with wanting to know what the other half is doing or has going on!
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#1959155 - 09/04/14 01:04 PM Re: St. Louis Fed says consumers are "hoarding money." Bankster
edAudit Offline
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Originally Posted By: GoBucs
Whatever works for you is great. But just curious, for the people that say mine is mine and his is his, what happens if one of you loses his/her income? My wife has had two government jobs eliminated in the past four years, through no fault of her own. I can't imagine if we had separate accounts. Would she have to ask me for an allowance? That wouldn't seem right.

And I'm guessing you guys don't have kids, because we spend just about everything on them, or as a family. I don't spend much of anything on myself.


Bingo including the two jobs thing.
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