New economic data show that last month consumers were not tempted by retailers offering deep discounts. They were not enticed by lower home prices. And even though falling gas prices made their wallets a little fatter, they held on to their newfound savings and put off buying big-ticket items such as autos and home appliances. Full Story »
Posted by Derek Hawkins
Interesting report on the decline of consumer spending in the U.S. in recent months, fueled by tighter credit standards and growing unemployment. Well reported, with good research citing credible sources, and helpful context about this important topic.
With the Fed printing money, the only weapon the consumer has against inflation is to hold on to his money and search out bargains. In fact, consumers must withhold an amount of money equal to the new credit the Fed have created. If we ever start on a spending spree again, inflation will be crippling. The corolary of the above is that the money to bail out the banks is potentially coming out of the bank accounts of each and every one of us in the form of the reduced buying power ... More »
With the banks holding own to the bail-out money, paying dividends instead loaning money for big ticket items such as cars, large appliances , and really keeping the American's taxpayer money to correct their books, this looks like a blue holiday season. can't believe theygave Paulson 300 billion dollars with only three sheets of paper with instructions on how to spend it.He at first said he would help the struggling homeowners, but in less than 24 hours, most went to the banks to ... More »
Retrieving Comments
