Quote:How in the world can you do that?

While gas prices have fallen 40 percent and the latest jobs numbers show growth, retail sales for January and December came up negative.

If you are to believe that this anemic economy created 257,000 jobs in January and 252,000 in December, how do you get holiday retail sales down almost a full percentage point in December and down 0.8 percent in January, when most of the gift cards are used?

Even if you disregard gasoline sales, January is flat and December is still down 0.2 percent.

Historically, falling prices at the pump have been very beneficial for retail sales.

So where is all of that extra money saved at fill-up going if it is not finding its way into the retail till?

We looked to the Energy Information Agency, which says the average household will save $550 in 2015 — while some analysts have the figure as high as $1,400.

AAA sees all US drivers saving $75 billion on gasoline this year on top of the $14 billion saved last year, with most of it coming in the last months.

Retail sales are one of more statistically powerful gauges of economic prosperity, as they are not based on sentiment or expectations or any other BS. They are real dollars and cents.

Wall Street reacted quickly to the dismal retail sales news. JPMorgan cut its projection for growth in gross domestic product in the first quarter to 2.5 percent from 3 percent.

So the money is real, but it isn’t going into cash registers.

One reason is that health-care costs continue to climb wildly out of control. The Affordable Care Act is obviously anything but.

Health-care costs are expected to mushroom by another 6.8 percent overall this year, according to a report from PricewaterhouseCooper’s Health Research Institute.

And that 6.8 percent figure doesn’t allow for the fact that many employers have been reducing what they pay toward insurance.

All the while, according to some research, the average doctor visit has gone down to seven minutes from the 13 minute-to-16 minute range.

So that 6.8 percent rise in health care is soaking up lots of the cash saved from falling gas prices.

In addition, some consumers are setting aside the gas premium for a rainy day.

The latest personal saving rate jumped to 4.9 percent in December from 4.3 percent the prior month, the Commerce Department said last week.

Of course, anyone who has kids in college or kids who plan on attending school probably isn’t rushing out to spend his or her $550 to $1,400 fuel savings on frivolous or fun new trinkets and treats.

Per The College Board’s Annual Survey of Colleges, the average public four-year, in-state undergraduate school’s tuition, fees, room and board cost $18,943 annually. The average private college comes in at a mind-blowing $42,419. Both staggering numbers are before books, clothes and pocket money.

Of course, it is entirely possible consumers were hoarding their savings from the pumps to purchase Valentine’s Day flowers and chocolates Saturday.

The cost of a dozen delivered long-stem red roses shot up to $147.22 after remaining steady for three years at $129.07, according to Houston Asset Management’s “Cost of Loving Index.” That’s a 13.95 percent increase.

Worry not.

The price of cocoa — the key ingredient in chocolate — has seen spikes but has driven up candy prices only 5 percent to 8 percent.

The heart-shaped (and apparently high-margined) box of Godiva will stay at $100.

Heck, it’s very easy to burn through that extra $550 you saved at the pump in this the least prosperous of all economic recoveries.

http://nypost.com/2015/02/15/lower-gas-p...ail-sales/

RedWingTom will counter all of this with the unemployment numbers fro last week. Oh wait........

I have a feeling a lot of people are trying to pay down some debt from the past few years and maybe save a bit. I know that is what I have been doing. As much as I would love to spend the savings on frivolous ****, that mortgage, student loan, and car payment are still there staring me in the face.

With gas prices down, I can now fill up on $45.00 instead of just putting $45.00 in the tank and squeezing a week out of a tank that's halfway between half and 3/4ths of a tank. So in essence, I'm not actually saving money, I'm just able to get more gas.

Welcome to the real life of an average middle class worker. And thanks for having produce prices go up to balance the drop of gas. I'm still in the same boat but with more fuel, so I don't complain.

I don't buy the whole "job increase" thing either, unless they're leaving out the number of people that quit, got fired, or got laid off. I'll bet those trump the "new jobs" gained.

There are your reasons why retail sales still suck.

People are paying off debts with savings at the gas pumps, not going on shopping sprees. I fall into this category...

Gas has risen .25 here in the last 3 weeks. Say good bye to cheap gas again.

also, the gas prices going down is saving you what? 20 bucks? I fill up every other week. Was $60, now its a little less than 40, so $40 a month. Nothing huge.

(02-16-2015 09:04 AM)BleedsHuskieRed Wrote:  I have a feeling a lot of people are trying to pay down some debt from the past few years and maybe save a bit. I know that is what I have been doing. As much as I would love to spend the savings on frivolous ****, that mortgage, student loan, and car payment are still there staring me in the face.

^^^Winner^^^. If gas prices stay low for 6 months to a year then we all will see spending increase.

(02-16-2015 11:22 AM)South Carolina Duke Wrote:  Gas has risen .25 here in the last 3 weeks. Say good bye to cheap gas again.

Funny too, because they've laid off a huge amount of experienced people in the oilfield because of lower prices...

I guess those guys weren't around in 2002 when the same thing happened.

(02-16-2015 12:43 PM)LSU04_08 Wrote:  

(02-16-2015 11:22 AM)South Carolina Duke Wrote:  Gas has risen .25 here in the last 3 weeks. Say good bye to cheap gas again.

Funny too, because they've laid off a huge amount of experienced people in the oilfield because of lower prices...

I guess those guys weren't around in 2002 when the same thing happened.

laid off or furloughed?

(02-16-2015 03:33 PM)fsquid Wrote:  

(02-16-2015 12:43 PM)LSU04_08 Wrote:  

(02-16-2015 11:22 AM)South Carolina Duke Wrote:  Gas has risen .25 here in the last 3 weeks. Say good bye to cheap gas again.

Funny too, because they've laid off a huge amount of experienced people in the oilfield because of lower prices...

I guess those guys weren't around in 2002 when the same thing happened.

laid off or furloughed?

I guess you can say furloughed, but I wouldn't sit around and wait to be hired back because it's more indefinite to permanent than it is temporary.

In 2002, this same thing happened and while lots of people were being laid off all around us, our company didn't lay off one single person. That's why I've stressed, since prices dropped, that if these guys in charge know how to manage their district, nobody has to lose their job. We were lucky to catch one job a week, and were limited to 40 hours a week for about 6 months. You can only wash your pump truck and check your fluids so many times in 8 hours, much less 40. It was rough but we did it.

It hasn't been a good thing for my pocket book. It saved me a $100 per month but costs me thousands of dollars elsewhere.

I doubt I am alone.

(02-16-2015 03:41 PM)LSU04_08 Wrote:  

(02-16-2015 03:33 PM)fsquid Wrote:  

(02-16-2015 12:43 PM)LSU04_08 Wrote:  

(02-16-2015 11:22 AM)South Carolina Duke Wrote:  Gas has risen .25 here in the last 3 weeks. Say good bye to cheap gas again.

Funny too, because they've laid off a huge amount of experienced people in the oilfield because of lower prices...

I guess those guys weren't around in 2002 when the same thing happened.

laid off or furloughed?

I guess you can say furloughed, but I wouldn't sit around and wait to be hired back because it's more indefinite to permanent than it is temporary.

In 2002, this same thing happened and while lots of people were being laid off all around us, our company didn't lay off one single person. That's why I've stressed, since prices dropped, that if these guys in charge know how to manage their district, nobody has to lose their job. We were lucky to catch one job a week, and were limited to 40 hours a week for about 6 months. You can only wash your pump truck and check your fluids so many times in 8 hours, much less 40. It was rough but we did it.

furlough is a 90 day window, so there is a time period. Just didn't know what those in charge think about the longevity of these low prices.

(02-16-2015 04:50 PM)HeartOfDixie Wrote:  It hasn't been a good thing for my pocket book. It saved me a $100 per month but costs me thousands of dollars elsewhere.

I doubt I am alone.

Please explain.

(02-17-2015 02:13 PM)Fitbud Wrote:  

(02-16-2015 04:50 PM)HeartOfDixie Wrote:  It hasn't been a good thing for my pocket book. It saved me a $100 per month but costs me thousands of dollars elsewhere.

I doubt I am alone.

Please explain.

A significant portion of my money is tied up in various investments all dealing with petroleum and oil. Those investments have lost value.

I save money in one hand but have lost more in the other.

Net, I am in a worse situation.

same here

(02-17-2015 03:05 PM)HeartOfDixie Wrote:  

(02-17-2015 02:13 PM)Fitbud Wrote:  

(02-16-2015 04:50 PM)HeartOfDixie Wrote:  It hasn't been a good thing for my pocket book. It saved me a $100 per month but costs me thousands of dollars elsewhere.

I doubt I am alone.

Please explain.

A significant portion of my money is tied up in various investments all dealing with petroleum and oil. Those investments have lost value.

I save money in one hand but have lost more in the other.

Net, I am in a worse situation.

I understand investment failure.....I haven't seen the market since the internutz bubble

It's still the move they (oil corps) had to make to offset alternative fuel investment.....

I don't care what anyone says relative to justification.....it's just a game that only involves protecting money......and if one guesses wrong, it's a problem for them.....

for the masses that don't get to play that game......it's a godsend....

and for my business, if I see 2/gal this year, it puts 10k more in my pocket.....

I've been putting extra money into my mortgage, and it's a little bit of a stretch with how much I'm putting in. So I need to keep a closer eye on what I'm spending so I don't have to dip into my other accounts to pay my bills.