Consumers are Back in Investment Mode After Recession Period

Consumers are Back in Investment Mode After Recession PeriodAs per a new data assimilated by the US government, the consumers are reversing the course of saving and hoarding money due to recession period and are again becoming comfortable in borrowing, with which development is expected to get fueled by more spending.

For the last four years, the consumers were holding their cash back so as to pay down their own debts due to the fears of longer recession period then.

As per the Federal Reserve data, in the final quarter of the 2012, US municipal bonds fled high due to the individual investment which dragged up a record of $238.1 billion out of the market. The number of the third quarter of 2012 was a bit higher than the fourth quarter which is $221.9 billion investors.

President Barack Obama and Congress, at the end of 2012, were considering of limiting the tax exemption for the interests paid on municipal bonds, which will ultimately boost the revenues avoiding the fiscal cliff.

And those investors who were unsure of their tax status of their bonds, fled off the market. But the bond funds which appeal the retail investors saw some stable investments for all year long in 2012.

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