Consumers Retrench As Economy Weakens

[Old Round Guy]

http://biz.yahoo.com/ap/080121/recession_watch_consumers_react.html?.v=2

Excerpt

Consumers Pull Back on Spending, Worry More About Debt As Economy Weakens

NEW YORK (AP) -- Joi Freemont, a dentist in suburban Atlanta, doesn't have to look further than her appointment book to tell that people are worried about money.

Patients who used to get their teeth whitened all the time "now want to think about it a bit," she said. Braces? "People were getting them for the kids, for themselves, but now they're waiting," she added. And when people get cavities, they have their fillings done one a month, not five or six at a time, she said.

As a result, Freemont and her husband are worried their income could drop and are trying to be more prudent with their money. They're monitoring spending more closely and continuing to whittle down their credit card balances and her dental school debt, she said.

"We know how to put the brakes on if we have to," said Freemont, 35.

Across America, there are growing signs that consumers are worried about the weakening economy, which could slip into recession. While some say Americans are not famed for their belt-tightening tactics, there are signs that people are trying to improve their personal balance sheets so they're ready for tougher times.

End excerpt


If this continues to be the trend how will it affect bush's stimulus package?

[JIMV]

Folk will spend the money as quickly as they get it, which might help the economy or not. I like that you call it the Bush stimulous package as it will be imensely popular and the dems are rushing to become associated with the idea. Chuckie Schumer was salivating over the prospect this weekend on the talking head showss

[Erika]

Little help to the economy. Fill up your tanks, pay the energy bills...feed the corporat bushbot's pockets. Jenna is going to be married. Nice dowry for her as the rest of America sinks. We didn't picnic with the Saudis as the Bush family has done for decades.

Still waiting for Bush/Cheney to be impeached.

[freewolf46]

Hardly anyone spends mad money on bills. The average person who struggles and is used to struggling, knows he will almost always struggle. He never has the chance to get things he just wants. Free money almost always will be spent by this kind of person to get a couple of things that he would not be able to get any other way. He will then continue to struggle as always.

[Bruce McAuley]

The Asian markets are tanking bad because the American economy looks so bad, and today will show HOW bad it looks to the investors in the American stock markets. Those who sell short will do well today.
I resolve to use my electric bicycle a lot this year. George won't do anything for the poor people, we all know that.:rolleyes:

Bruce

[Drivesme]

Folk will spend the money as quickly as they get it, which might help the economy or not. I like that you call it the Bush stimulous package as it will be imensely popular and the dems are rushing to become associated with the idea. Chuckie Schumer was salivating over the prospect this weekend on the talking head showss

As hard as I look I can't find anyone "rushing" to be part of bush the losers next failed 'plan'.
Can you provide some links jim?

What I did find is this,
Dealers said a major new plan by President George W. Bush to prevent a US recession was not enough to offset the stream of bad news from banks due to the crisis in the American housing market.

"People aren't buying the US bail-out story and that feeling has been exacerbated by the weakness overnight in the Asian markets," said Richard Hunter, equities analyst at broker Hargreaves Lansdown in London.

My search continues for someone, anyone that still trusts bush the loser......

[GUS]

China and Arab countries have a staggering amount of treasury securities. And the oil-rich countries are sitting on so many petrodollars that they are looking beyond prestige hotels and fashion labels and taking advantage of the fire sale to buy eye-popping stakes in our major financial institutions.

Like the president, Citigroup and Merrill Lynch came with tin cups to Middle Eastern, Asian and American investors last week, for a combined total of nearly $19.1 billion, after the subprime mortgage debacle blew up their books.

Citigroup, which raised $7.5 billion from Abu Dhabi in November, raised another $12.5 billion, including from Singapore, Kuwait and Saudi Prince Walid bin Talal. Merrill Lynch gave $6.6 billion in preferred stock to Kuwait, South Korea, a Japanese bank and others.

As Warren Buffett has said, we are giving ourselves a party to feed our appetite for oil and imported goods and paying for it by selling off the furniture, our most precious assets.

When the president got back Thursday night from a trip that made it clear he has no clout overseas, he had to rush the ailing economy into intensive care.

Next to the cool, strong euro, the dollar is a comparative runt in the world’s currencies. The weak dollar lets foreigners snap up real estate in Manhattan.

It is striking that the Bush scion, who has tried so hard to do the opposite of his father, also ends up facing the prospect of a recession in his final year in office.

Maybe if the president had spent the trillion he squandered on his Iraq odyssey on energy research, we might have broken the oil addiction.

Now it’s a race between Iraq, stupid, or the economy, stupid, to see which one will usher out W.

The country is engaged in a fit of nativism and Lou Dobbsism, obsessing about the millions of Mexicans who might be sneaking across the border when billions in foreign money are pouring into Citigroup. You figure out what might be a bigger problem.

The national boundaries that really matter are the financial ones: Who’s going to own the American economy?

More of this Articles in Opinion »http://www.nytimes.com/2008/01/20/opinion/20dowd.html?_r=1&oref=slogin

[Knowle of 4U]

Gus, you surely have that RIGHT!

Though I will be happy to receive some extra cash as I have been in lock down since June and only spend what's absolutely necessary and staying out of debt for any type of unnecessary perks, I just don't see how $600 per person is going to help much at all. I really think that by the time the checks are issued either

1. Everyone will be getting so far behind in payments that it will be used to pay bills. OR

2. The economy will already be rebounding and it won't be so necessary anymore and it will be put in savings.

Seems to me they could've stopped all of this if they had just put a freeze on ARMs (subprime or not) way back when they started resetting at the high rates that started this whole mess. Even if they had only frozen them for 12 months or so, that might have been enough to keep things treading water long enough to see some improvements that would make the resetting interest rates not such an issue.

[NuclearShadows]

After 911 when people asked the president what we could do, he said “Go shopping!!” Makes one wonder if this influx of “spending cash” is just a preemptive strike to finance the next war… Conspiracy I know..

Speaking of stuff, have you all seen this? (http://www.storyofstuff.com/) A bit over the top and questionable in some respect, but essentially good… 20 minutes long

[JIMV]

The Asian markets have been open under and hour and already the Nikkei is down 235...tomorrow might be interesting.

[Bruce McAuley]

I'll be watching tomorrow, looks like low down stimulus time for the Bushies. Or the Chinese will just buy more and more of our assets as the dollar slides into the toilet.
:rolleyes:

Bruce

[JIMV]

Watching Chuckie Schumer grovel for goodies for his non productive base, I cannot say this 'stimulous' package is anything but non partisan.