Are We Days Away From A Financial Collapse? Americans Haven’t Spent This Much On Gas In Nearly Three Decades, With The Exception of 2008, Investors Are Finally Dropping Their Fear And Went All In On Stock Market, Currency Wars Are Starting To Look A Bit Much Like 1931
February 20th, 2013
Americans Haven’t Spent This Much Of Their Paycheck On Gas In 30 Years
Paid over $4.00 a gallon this weekend. This high this early in the year brings the gas price back on the macro radar screen.
The EIA notes,
Gasoline expenditures in 2012 for the average U.S. household reached $2,912, or just under 4% of income before taxes, according to EIA estimates. This was the highest estimated percentage of household income spent on gasoline in nearly three decades, with the exception of 2008, when the average household spent a similar amount.
2% Payroll Tax Cut Expiration Is a Bigger Deal Than You Think: Sozzi
For as picked over and criticized as the Fiscal Cliff deal has been over the last few days, a tax break getting less attention than may have been expected is the one thing that impacts anyone taking home a paycheck. With the expiration of a temporary Social Security payroll tax everyone’s take home pay just fell 2%. The question is whether or not the reduction is going to be more of a problem than most investors think.
“This hurts seriously,” says Brian Sozzi, chief equities analyst NBG Productions, warning that next week Americans will feel “payroll shock.”