“Has America gotten frugal? Jim Cramer asked on Mad Money Wednesday,” Scott Rutt reports for TheStreet. “Cramer said it appears Americans now have changed since the Great Recession of 2008, just as our grandparents did after the Great Depression.”
“Higher inflation numbers have always been met with rising interest rates, Cramer said. Yet, after today’s red-hot inflation number was released, interest rates actually fell to their lowest levels since the fall of 2013,” Rutt reports. “How can that be?”
“Cramer said it appears the historical linkages have been broken post-2008 because our behavior has changed. The American consumer is still afraid. Borrowing remains low, home buying is down, couples are having fewer children, children are living with their parents longer — all signs the nation has simply gotten more frugal,” Rutt reports. “Cramer said investors need to use this artificial weakness to take advantage of these discounts in the markets. Eventually, these discounts will begin to dissipate.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]