Consumers are saving at the gas pump but not spending at the mall
Breakfast with Benjamin: Retail sales are not supposed to slump when gas prices are low, so where's that money going? Plus: Larry Summers advises the Fed against hiking rates, how to use good food to attract new clients, and rich people get another cool perk just for being rich.
- With gasoline at around $2 a gallon, retail sales are not supposed to slump. The fact that they are slumping suggests something else is happening to all that extra money. Maybe people are saving up to pay their taxes. Wages are still flat after all these years
- It’s too soon to even consider raising interest rates, according to former Treasury Secretary Larry Summers. A little bit of inflation would be nice. ‘There’s no reason to tighten until we see the whites of inflation’s eyes’
- Is feeding a room full of strangers a smart way to build your client base? You might be surprised. People want to feel good about their financial adviser, and who doesn’t like to be fed?
- Much is being made of the new ‘elite, invite-only credit cards’ for really rich people. What’s the big deal? I get credit card invites in the mail several times a week. Sometimes the invites are even addressed to my dog. The ‘plunk’ factor that comes with unlimited spending power
Learn more about reprints and licensing for this article.