Fed: US consumers have decided to 'hoard money'

Yahoo Finance ^

[Red in Blue PA]

One of the great mysteries of the post-financial crisis world is why the U.S. has lacked inflation despite all the money being pumped into the economy.

The St. Louis Federal Reserve thinks it has the answer: A paper the central bank branch published this week blames the low level of money movement on consumers and their "willingness to hoard money," as well as the Fed's own policies.

[Red in Blue PA]

Hoarding money?

Income is DOWN over the past 5 years with prices of most things way up yet people are hoarding money?????

Perhaps in the Bizarro World.

[OpusatFR]

The only ones hording money are the big banks.

[doc1019]

Yep, what money?

[Bryanw92]

What they mean is that people who have money are hoarding (previously known as “saving” back when sanity ruled our nation) it.

[ButThreeLeftsDo]

Who has money to hoard?

Not me...

Blame the little people.

[GeronL]

Can’t hoard what we do not have. With food and gas and electric rates skyrocketing, as per Obama’s plan, who can hoard money??

[PGR88]

The Fed, fiat money and politicized interest rates are the foundation of progressive nanny-state government.

[RetiredTexasVet]

Beat me to it. Just like a communist to declare saving is hoarding. I’m sure people who are preparing are hoarders also according to them.

[cbvanb]

In another time and place this would have been called “savings”, and was encouraged as a sound financial practice. No wonder these fools don’t recognize it.

[cripplecreek]

Lets just say I hope common rocks become valuable because I do have a hoard of those.

[ButThreeLeftsDo]

Good thing for Yahoo Finance that inner city welfare folks don’t read Yahoo Finance.

[acapesket]

That is a BINGO!

[vpintheak]

Whatever, Americans don’t have money to hoard.

[hal ogen]

LIBs are mentally ill. “Hoarding money”????? It used to be called “saving” in a previously sane world.

[jimpick]

I would spend more money if I didn't fear our government was going to totally crash the economy. It is bad enough now but I fear that they want it much much worse than it is now. Other than holding more money now I have spent what I do spend on food guns and ammo.

[GeronL]

It would be sure to make them dumber.

[Ouderkirk]

NOt hoarding money.....ammo, yes.

Paper money....ha ha ha, you mean the stuff from the Fed Reserve. Maybe to wipe my arse, but not as a commodity.

[Red in Blue PA]

I am the same way. All discretionary money goes to guns and ammo. Partly to prepare, partly as a FU to obozo.

[jimpick]

Nd gosh I could be hoarding if you count my on hand cash reserve has doubled to One years income verses 6 months in 2008.

[combat_boots]

This is sick and twisted logic.