Congratulations! Only 7 years late:

Biderman takes Issue with U.S. Government Savings Data; U.S. Savings Rate is Negative and Falling– only he is wrong, savings rates were negative, and now they have been going up the past few months, hence the weak retail data.

Note that Biderman said as recently April that the recession was over, and the economy was expanding.

TGL quoted Charles Biderman of Trimtabs in April 08:

“The US economy is improving rather than deteriorating. The income and employment taxes withheld from the paychecks of all U.S. workers on payrolls rose 3.1% year-over-year in the past two weeks and one day (Friday, April 4 through Friday, April 18). Withholdings on the latest Friday this year were 13.2% higher than withholdings on the same Friday last year, and the growth rate will probably rise further once withholdings for Monday are available. The growth rates we have been measuring are definitely not indicative of an economy sliding into a deep recession. (emphasis added)

I have been terribly unimpressed with his work . . .

>

Previously:
TrimTabs: Its a Recession, and Its Already Over (Wrong) (April 2008)

http://www.ritholtz.com/blog/2008/04/trimtabs-its-a-recession-and-its-already-over-wrong/

Trimtabs Continues to Abuse Withholding Data (April 2008)

http://www.ritholtz.com/blog/2008/04/trimtabs-continues-to-abuse-withholding-data/

“The Underlevered American Household” (June 2006)

http://www.ritholtz.com/blog/2006/06/james-altucher-the-underlevered-american-household/

Category: Data Analysis, Economy, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Trimtabs: Americans have stopped saving (?!?)”

  1. Steve Barry says:

    agree Barry…and he is always so sure of himself on CNBC.

  2. zachstocks says:

    This is a pretty well known fact. The savings rate has dipped below zero in months past but most recently we are seeing that rate increase. This new trend will likely continue as consumers become more conservative and attempt to de-lever their balance sheet. It should cause a drastic reduction in consumer spending and we are already seeing the process begin. But I believe we are seeing the tip of the iceberg – much more is to come.

    Zach
    http://zachstocks.com

  3. victorberry says:

    How do the idiot “loyal Bushies” over at the Departments of Commerce and/or Labor compute the national savings rate of American families? Do they consider a decrease in the dollar amount of debt as indicative of savings? I don’t think home foreclosures and credit card defaults qualify as signs of increased savings. Neither is cashing out 401(k) plans to pay down debts.