Today the National Retail Federation projected a down
holiday sales season in consumer purchases, following the down fall back to school season.
Economists seem always to look to consumer spending to drive economic recovery, but this year, at this time, spending is apparently not the engine that can.
The general thought is that consumers are looking for savings and job security - not the latest thing.
Will we be in a new economy - one based on saving rather than spending. What kind of economy will we build as we move into the recovery.
NPR ran this story a few days ago about the likelihood that China will lead the world economic recovery. It is an excellent article, describing the need for a major correction to national savings vs spending imbalances.
The new realities are changing habits and bringing about a "fiscal conservatism".
Is this a new American consumer? a new American economy? We are moving out of the recession - but it does not look like we can depend on overspending to drive it.
It seems to me that this will prove to be a good thing.
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Richard Smith Conventional, FHA, FHA 203k, HUD $100 down purchases, VA, Jumbo VA, Rural Development, Jumbo, FannieMae Homepath, Home Equity Line of Credit (HELOC). |
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Richard - Can you expect the government to stop it's spending ways? Not as long as Pelosi is in charge.
Elizabeth,
Government is not apparently participating in the movement towards a new fiscal conservatism. Not sure what can be done about that. We can vote out the whole bunch, which I actually think is a good idea. Let's gets some new folks in there. Let the present Congress go find a job.
Richard
Consumer spending has been reported to be off, unemployement is rising in my area... not good sounding news.
Judi,
I do not think we can depend on spending to bear the burden. This is a change that economic models I think. With so many permanent job losses, we are moving into a new economy. It is the jobs that are scary. What will the new jobs be, and where?
Richard