According to the pundits the consumer is back. All that pent up demand that has been discussed ad nauseum has finally shown itself. As a matter of fact the consumers were so intent on spending that they dug deep into their piggy banks (savings) in order to do it.
Consumer spending accelerated at the fastest pace since 2009. Hosanna, hosanna.
Retailers must have been overwhelmed as I am sure that each day in April was like a Thanksgiving Black Friday. People, more than likely, were lining up for the daily opening of Walmart (oh my bad, they never closed) or perhaps even Macy’s. Shoppers rushing into the stores (we’ve all seen the videos) bumping people out of the way and exhibiting animal like (with all due respects to the animal kingdom) behavior. Pent up demand can do that to a person.
My next door neighbor, Ralph, is a case in point. Ralph never leaves the house. As a matter of fact, I periodically call 911 to have someone make sure that old Ralph is still alive. I never visit Ralph in the winter since he keeps his heat turned down to just above freezing to save on the electric bill. Brrrrrrrrrr! I probably don’t need to worry about Ralph’s health since he’s always proclaiming he never visits a doctor or a hospital and has absolutely no need for health insurance. Good for you Ralph.
But “pent up demand” can do strange things to a person.
Ralph’s wife informed me that after having spent a bitter winter both inside and out the “pent up demand” became so overwhelming that Ralph turned up the thermostat from 34 to 44 during the month of April. In addition, Ralph also caved to the pressure of Obamacare and wrote a check to enlist, of course, that was after checking into the emergency room at the hospital in late March for frostbite.
Unfortunately, Ralph’s “pent up demand” was not in his budget and required that he break into savings in order to satisfy his needs or was that wants.
I am certain that Ralph is a typical American and that his story is shared by millions all over the country. If that is the case then all those new, college graduate philosophy majors “clerks that have just been hired by Macy’s” will have to wait until the actual Black Friday for their business.
Ahhhhh, don’t you just love “pent up demand?”
Along with his 40-years of dedication in the financial services industry, Bill is the President and CEO of GPSforLife, has recently authored a highly successful book entitled 44th: A Presidential Conspiracy, publishes his dynamic monthly financial newsletter MacroProfit, and faithfully continues his third decade on the radio with It’s All About Money, which can be heard weekdays on Money Radio in Phoenix and in podcast form on his website (and on smartphone apps) published at billtatro.com weekdays at 5pm Eastern. Bill can be reached via email at firstname.lastname@example.org and on Twitter @tatroshow.