Sunday, October 9, 2011
Ladies and Gentlemen: You are Now $2.9 Trillion Poorer!
Here is a depressing article that reflects on the third quarter and how it will effect the next 3 months. As, it ways in the title, Americans are $2.9 trillion poorer than we were on June 30. Economists are fearing the "wealth effect" because of how consumers feel about their economic status effects their future plans. They are predicting that over the next few months, spending will be negatively influenced this fact. This may also restrict the holiday purchasing levels in December.
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The most interesting part of this article, to me, was the discussion of the rise of the Tea Party and now the Occupy Wall Street movements. Both were spurred by frustration with the political economic status quo, but they are on opposite sides of the political spectrum. It should be interesting to see who wins out in these tough economic times, especially with a presidential election soon approaching.
ReplyDeleteIt is saddening to read articles such as this and see the big picture of the state our economy is truly in. It makes you wonder how we will ever get out of this hole but as many economists say, you just gotta hang in there and no that we have been here before and always come out of it.
ReplyDeleteI read a news article a few days back saying that people will consume less for the holidays with this economic state and I think its valid. But they are willing to buy small things to keep them happy like lipsticks for women.
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