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Subscribe to RSSAmericans are still keeping a tight grip on their wallets, bypassing vacations and dinners out, even though they feel better about their own financial security.
What’s still spooking U.S. consumers? Gas prices.
Even though gas prices have been declining for several months, nearly six in 10 consumers say they’ve cut back on nonessential spending because of hefty fuel prices, according to a study released Monday by Bankrate.com.
“Gas prices are still a drag on people’s spending power,” said Greg McBride, Bankrate’s senior financial analyst.
According to AAA, the national average price for regular unleaded fuel declined to $3.689 a gallon, down from $3.871 a gallon last month, and below the average prices of $3.867 a year ago.
“Despite the drop in recent weeks, gas prices are still at elevated levels,” he continued. This at a time, he pointed out, “when so many households are dealing with stagnant incomes.”
But there’s good news in the Bankrate.com report. Consumers are feeling pretty okay about their job security and their debt loads.
For the first time since December 2010, Bankrate’s Financial Security Index -- which tracks how consumer gauge there overall economic health -- passed the 100 threshold, which shows that Americans see an improvement in their financial security.
Bankrate's Financial Security Index
“We’ve seen improvement on multiple fronts,” McBride maintained. “People are feeling more secure in their jobs, they feel better about their debt burdens, and they’re reporting lower net worth with less frequency.”
The main reason for the optimism, he noted, was the stabilizing of home prices throughout many town across the country. “When people see home prices sliding they can see their net worth declining, but when they rise, all of a sudden they feel better about their net worth.”
So the wild card, he added, are gas prices. If they start to decline further, “that’s going to breath some life into household budgets and they’ll have more money to spend.”
And it may take off before the job market gets more robust.
“While hiring has not exactly taken off, downsizing activity remains relatively low and many employers are actually worried about losing talent," maintained John Challenger, CEO of outplacement firm Challenger, Gray & Christmas. "This is not to say that job security has returned to pre-recession levels, but workers certainly are enjoying more security than two years ago."
What’s your take? Have you decided to cut back on nights out at the movies, or Memorial Day travel because of gas prices? Do you feel more secure about you job?
Leave a Comment:
Obama and his peeps will work with the oil companies and promise incentives down the road to improve his image. If you think gas is high now....if we re-elect Obama, it's going to get really ugly. I'm not a democrat or a republican, but do NOT vote for Obama!!!
corporate and political think tankers
thinking up new ways
to get their hands on my piss poor pay
millions of children starving
crybaby millionaire celebrity worship
cultural hero's without grace
nothing but greed and avarice live in this place
f...ing religion don’t even get me started
we're long overdue for a new kind of prophet
the inner experience we seek
the outer programming keeps us meek
wall street robber barons took everyone's pension
instead of jail they got the materialist's slice of heaven
anxiety runs high
the working class are all on overload taking it up the ass
meanwhile the entire planet is fighting over gas
your vote is a societal joke
vote with the way you spend or don’t spend your monies
societies whither like seasonal flowers
some are enjoying their final hours
gas prices got back up when iran say we are going to block the strait
Gas is or was $4.19.9 a gallon yesterday afternoon. Hard to say what it might be this morning. That is the cheapest price in town too. I am over 65 on a fixed income so have learned to make one tank of gas last at least 5-6 weeks. I only go out when I have more than one stop to make and I don't venture to the far side of town often. Its a shame that we are all cutting back on everything just BECAUSE of the gas prices. You have to budget and make do but I won't go over my gas budget of a fill up ONCE a month or even longer if I can.
RE #47 I believe gas prices were already manipulated very high and impoverishing us, but just went even higher with the Iran event.
O'Bummer cares only about O'Bummer. That being said, his involvment in high gas prices is diminished by the world market. Increasing demand in China, India and otther developing nations has been the biggest contributor to the increase. No long range plans to develop our own resources has been the other. Here is where O'Bummer is to blame.
However, things will get a lot worse if this pos gets re-elected. If the World reserve currency ( The US Dollar) is replaced, we will see gas go to $8-9.00/gallon with runaway two digit inflation. Why?
Because we have been printing money to pay our debts. Other nations see this and moves are underway to replace the dollar. Right now, if Germany wants to buy a million gallons of gasoline, they have to pay in US dollars, not Euros. That means they have to buy dollars. We do not hav that problem.
Remember too, if Gasoline goes up, everything else will follow. $10.00 for a loaf of bread, $12.00 for a gallon of milk, and so on. All this will happen if the dollar loses as the World Reserve Currency.
The last nation to lose was Great Britain after WW II. Everything in Britain went sky high. The standard of living plummeted. The Pound Sterling was replaced by the Dollar. The Dollar can be replaced by Chinese Currency, or the SDR issued by the IMF. In brief, the same circumstances that caused the collapse of the Pound Sterling in 1946 exist in the USA today. History can repeat itself, especially when no one pays attention to what it teaches us.
Congratulations oil companies, your greed is slowing the economy but at least you guys get to keep posting higher and higher company profits. I've surely curtailed my spending and traveling which only serves to hurt other parts of the economy. I wonder if some day we will look back and marvel at the amazing levels of greed that have hurt the entire world.
Wonders how the rich will get blood out of a turnip once they have squeezed the middle class dry?
I read a post of someone saying "No" they have not cut back spending because of gas prices then posted: "Gas is getting better, it's the price of groceries that is crazy. If the lazy Republicans would get to work things would be better!" Lets use our brains here and economics 101. When the price of something goes up lets use gas, that means the cost of other things will also go up like groceries. So you can't sit there and point the finger at Republicans, because last time I check when there was a Republican President the avg gas price was over a dollar cheap nation wide.
I would like to comment on people's need to criticize those of us who are not able to curb our gas spending by using public transportation. If you could get your head out of the your butt or whatever city you happen to be living in and figure that there are places around this country where public transit doesn't exist or is so limited you can't access it anyways, you would realize how ridiculous your comment is. For those of us who live in an area where we have no other choice but to drive to work, to the store, to school, etc. Finding ways to curb the gas budget in nearly impossible. This is not republicans, democrats faults or the presidents fault, it is our fault for allowing corporate amercia to become the "bully" and the only reason corporate amercia can do what they do, is because we the people are so busy playing the blame game we forgot who to blame, that would be ourselves for allowing the politicians and corproate amercia to take over and leave the rest of us in the their dust. We have given them so much power and allowed them to bully us, we forgot how to say no.
It's just basic economics, if I spend more on gasoline, I have less in my pocket for anything else.
The artilcle states that "Gas prices are still a drag on people’s spending power", in reality it is an Anchor to peoples spending power. My wife and I have to commute, and with the price of gas, that spending power is being flushed down the toilet just to make a few people really rich. Most families cannot handle the price of gas. Last time it got this high it totally crushed our economy. And then they wonder why now we are sliding deeper into the recession. Duh. I cant believe the "brains" in Washington can't figure this out. Boo!!!!
So again, why am I paying $4.21/gal? Even when the gas prices per barrel were over $100, I wasn't paying this much for gas. QUIT BEING GREEDY AND LOWER THE PRICES! Then maybe we can afford to raise the economy up by spending our money on other items as well!
It is all part of the master plan. We the peon people will be brought down, subdued, and sent off to the "slave traders block"/"detention camps" and there's not a damn thing we can do about it. Once that has been established we will quickly learn afterwards that we all live under a one world gubmint and dictatorship. Then will come the 16 hr a day work days 7 days a week for very little food and shelter. Those of us determined to be of no use to our master in chief will be summarily executed (probably about 50% of current pop.). Yes, there are indeed darker days ahead. If you think it sux now you had better enjoy it all you can because right now today is a bed of roses compared to what's in store for the very near future. Just continue to sit back and relax in total complacency and hide and watch my friends.
With the oil industry bleeding the consumer dry and our elected officials sitting idly by doing nothing who can afford anything extra these days? However on election day this year we will have the opportunity to let these political leaders know exactly what we think.
Communist, f......n Oil & gas companies are UnAmerican and UnPatriotic as ever, Lieing, cheating and stealing from Americans. And the American voters are too stupid to see this, and the corrupt politicians too greedy to stop it. So register to vote and Educate yourself on the candidates and vote out these radical right wing political terrorist, like boehner, Ryan, Paul and the other GOP and Tea-Party Terrorists. fight back against corruptions.
You have been thoroughly and successfully brainwashed my friend if you truthfully believe that the GOP is the only party responsible for this entire boondoggle. You might try doing a little unbiased in depth research on the party of choice you are so ignorantly attempting to defend. Just a little helpful advise: They are ALL in on this together.
Gas prices doubled since Obama took office. We need gas prices below $2.00..
People can't pay thier bills! Gas is a huge burden.
Broke in the USA
The consumer has to fight back on this gross display of greed. It starts with voting out all incumbents from both parties starting with the White House and throughout Congress. None of them have the fortitude to restrain the oil giants or the banksters. We have more known oil reserves in the American continent that exceed those of Arabia. The oil kings control prices by their ownership of a limited amount of oil refineries. They bought and shut down all the smaller competitors. Anti-trust violations that the leadership avoids pursuing. This is why the oil cartel wants a pipeline so they can prevent building more oil refineries and politicians from both parties are cooperating with them. They are creating a contrived shortage of fuel and are getting away with the crime.
You definitely have the correct solution to repair this God awful mess but the problem is there's only a small handful of us that thinks in that correct manner. The biggest majority of the brainwashed fools can only stay at each others throats and bicker about how useless the oppositions party is and how perfect and much needed thier own party is. Good luck also trying to convert any of them and get them to see things for what they really are, because in my experience with it, it is damn near impossible. Once that absolutely totally efficient propaganda machine does it's job of brainwashing the masses, it is all over with but the crying.
Constantly rediculous: Gas prices, Food prices, & healthcare costs. I mean really, does anyone REALLY have an actual illusion that things will get better.....Oh wait!..insert politician!!!
Jumped another .31 cents here in Illinois this morning. We can't afford the gas to get us to work to earn the money for the gas. We need help here in Illinois! I think they had them a little lower because NATO is/was here, but now, they skyrocket back up! Can't afford a hybrid, work is too far to walk or bike, so we suck it up, pay like everyone else and cut back where we can. This is NO WAY TO LIVE!