US Income and Spending Data August 2013

On Friday we will get a read on US income as well as consumption data for August. Incomes are expected to increase 0.4% while spending is expected to increase by 0.3%. It will be interesting to see if spending does increase what contributed to it.

Consumers have been under pressure for an extended period of time and a decrease in consumption is bad for the economy, but good news for the stimulus lovers out there who favor a weak economy so the Fed can keep wasting $85 billion per month. We all know how the story ended in 2008 which was preceded by traders and investors cheering for negative economic data so the Fed can keep interest rates low. History does repeat itself, just pointing it out.