NY Times: Full of Doubts, U.S. Shoppers Cut Spending

[marmar]

Full of Doubts, U.S. Shoppers Cut Spending

By LOUIS UCHITELLE, ANDREW MARTIN and STEPHANIE ROSENBLOOM
Published: October 5, 2008


Cowed by the financial crisis, American consumers are pulling back on their spending, all but guaranteeing that the economic situation will get worse before it gets better.

In response to the falling value of their homes and high gasoline prices, Americans have become more frugal all year. But in recent weeks, as the financial crisis reverberated from Wall Street to Washington, consumers appear to have cut back sharply. Even with the government beginning a giant bailout of the financial system, their confidence may have been too shaken for them to resume their free-spending ways any time soon.

Recent figures from companies, and interviews across the country, show that automobile sales are plummeting, airline traffic is dropping, restaurant chains are struggling to fill tables, customers are sparse in stores.

When the final tally is in, consumer spending for the quarter just ended will almost certainly shrink, the first quarterly decline in nearly two decades. Many economists, who began the third quarter expecting modest growth, now believe the cutbacks are so severe that the overall economy did not expand either, and they warn that a consumer-led recession could be more severe than the relatively mild one earlier this decade.

“The last few days have devastated the American consumer,” said Walter Loeb, president of Loeb Associates, a consultancy, who said he worried that the constant drumbeat of negative news about the economy was becoming a self-fulfilling prophecy. “They all feel poor.” .......(more)

The complete piece is at: http://www.nytimes.com/2008/10/06/business/06econ.html?_r=1&hp&oref=slogin

[sarcasmo]

1. Oh, NO! Jesus won't get a lot of presents this year.

[nadinbrzezinski]

2. In tough times everybody cuts down

yes it does have a mild feeding effect, or in the US a more severe one, but to blame the consumer is STOOPID.. the spending is a very late sigh of where things are going (incidentally so is the DOW)

[Lance_Boyle]

3. full of doubts, or bereft of dollars?

I've got lots of doubt - tons of it. It's the paucity of dollars that's keeping my spending in check. Funny thing their consultant seems to think its all emotional, not rational. So... how's YOUR bank account feeling today? :eyes:

[billyoc]

4. BLASPHEMERS!

I can't wait to see them trying to spin the Christmas retail sales this year. :rofl:

[nadinbrzezinski]

5. They won't even try

Wally Mart already said they expect a TERRIBLE year

[uppityperson]

6. My income is shrinking because people are cutting back on non-life threatening health care.

It sucks.

[spinbaby]

7. Darn right

Although it's darn rough trying to cut spending when prices are through the roof.:mad:


I'm compensating some by buying at thrift shops and farmers markets.

[Green Mountain Dem]

8. Well gosh darn it....

if we weren't just a bunch of "whiners" we would realize that this is just a mental recession.... dontchaknow! wink wink!