the visible hand

it is the theory which decides what can be observed – einstein

Jittery consumers seem likely to trigger a recession

Posted by ecoshift on November 27, 2007

Just remember all you jittery consumers out there, if we dip into a recession, it will be you who pulled the trigger. The economy is depending on you. And you are about to let us down. What are you thinking? One HDTV is enough? What about the basement and the kid’s rooms? Surely you have a few more thousand to go before all your cards are maxed out. Buck up. Nothing like a little debt to build character.

Jittery consumers seem likely to trigger a recession – Nov. 25, 2007
Don’t look now: Here comes the recession
By Colin Barr, senior writer

NEW YORK (Fortune) — The cash registers were ringing on Black Friday, but make no mistake: American consumers are jittery, and seem all but certain to push the U.S. economy into recession.

After years of living happily beyond their means, Americans are finally facing financial reality. A persistent rise in energy prices will mean bigger heating bills this winter and heftier tabs at the gas pump. Job growth is slowing and wage gains have been anemic. House prices are sliding, diminishing the value of the asset that’s the biggest factor in Americans’ personal wealth. Even the stock market, which has been resilient for so long in the face of eroding consumer sentiment, has begun pulling back amid signs of deep distress in the financial sector….

With consumer spending accounting for about three-quarters of U.S. economic activity, some economists say it is inevitable that the economy will stop growing at some point in the coming year, for the first time since the mild recession of 2001. “Right now, the question is how bad it’s going to get,” said David Rosenberg, chief North American economist at Merrill Lynch. “The question is one of magnitude.”


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