JVB BSullivan-Econ-Comment-080409

Broker Dealer / Institutional / Advisor Use Only August 4, 2009 ABOUT BILL SULLIVAN Income and Consumption: Inextricably linked The Department of Commerce’s William V. Sullivan, Jr. 2009, were pegged at $5.051 trillion, down serves as Chief Economist recent revisions to the National Income $360 billion or 6.6% from the November, at JVB Financial Group, Accounts confirmed the devastating effect 2007 reading. Government workers have working closely with the that the recession has had on household fared somewhat better over this interval, with firm’s trading desk, income growth. Equally important, the data this group experiencing an $82.0 billion providing analysis and underscored the strong linkage between increase in earnings over the last nineteen commentary on the U.S. earnings and spending since the business months. economy and the financial cycle contraction got underway as 2007 came Another approach to help explain the markets. Among his duties to a close. Given this relationship, it is quite shortfall in spending over the last 1 ½ years are authoring a weekly apparent that in order for consumption to report on credit market is to extract the influence of the Federal trends and maintaining a rise on a sustained basis, job creation must Government on household income regular schedule of strengthen and take-home pay must register a positions, particularly when allowing for conference calls that focus visible rebound. ongoing changes in the cost of ...