Spending and Saving: Holiday Time

Are Americans cutting back on spending and why? This article from Reuters and CNBC provides some interesting insights. I clipped a few comments below that I found to be of interest because the comments indicate the media may not merely be an observer with respect to the economy.  A White House spokesperson suggests that there is a negative connection between what people see in their checkbooks and what they hear on the news.  He is suggesting that the NEWS is worse than the paycheck.  Now, that’s news!

clipped from www.cnbc.com

There has not been a particularly strong link between consumer confidence and spending in recent years, but a swift decline in confidence often prompts people to retrench, and
that is closely associated with recessions.

The break that Greenspan spoke of in February 2001 first appeared in late November 2000, said Richard Curtin, director of the Reuters/University of Michigan Surveys of Consumers. The
recession officially began four months later.

For now, a relatively strong job market and wage growth have many people feeling OK about their financial position. A recent Reuters/Zogby survey found that more than half of
Americans polled rated their personal financial situation “good” or “excellent” — yet only about a quarter gave U.S. economic policy such high marks.
White House economic adviser Edward Lazear blames that on a “disconnect” between what people see in their own checkbooks and the bad news they read in the newspapers.

  blog it

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