MarketWatch: Consumers not consuming

[marmar]

American consumers crushed by job losses
Retail sales data to show a sixth consecutive month of declines

By Ruth Mantell, MarketWatch


WASHINGTON (MarketWatch) -- With almost 2.6 million job losses last year, American consumers, once seen as unflappable, pulled back.

On Wednesday, the government is scheduled to report retail sales for December, and economists expect a record sixth consecutive month of declines. While falling gas prices have relieved consumers to some extent, job losses are pinning down confidence to near-record lows, which translates to weak spending, wrote analysts with CIBC World Markets.

"With the U.S. economy in the throes of its first consumer-led recession since the early 1990s, the 2008 holiday sales season has surely been a dud," according to CIBC. "With so many economic indicators pointing to a horrible fourth quarter no one expects this report to bring anything but bad news. The only real debate is how horrible it will be."

Analysts polled by MarketWatch are expecting a drop in retail sales of 1.7% for December, following a decline of 1.8% in November. Excluding autos, analysts are looking for a decline of 1.9%, compared with 1.6% in the prior month.

"Tumbling household net worth, rising unemployment and depressed consumer confidence continue to have an adverse impact on spending," wrote Bank of America analysts in a research note.

On Friday, consumer sentiment results come out for early January from the Reuters/University of Michigan survey. Although the reading improved in December, it remained at relatively low levels with consumers reporting that lower prices provided some needed relief, but continued job losses and income declines were worrisome. Analysts polled by MarketWatch expect the January data to retreat. ........(more)

The complete piece is at: http://www.marketwatch.com/news/story/American-consumers-crushed-job-losses/story.aspx?guid=%7BD7BE5772%2DB293%2D4ED0%2DB36E%2DCE2FBA1F1EDC%7D

[greymattermom]

1. don't need stuff

Any thought that demographics may contribute? I'm a boomer, house is full, kids grown. I'm getting rid of stuff not buying new. Anyway, the stuff at the goodwill is nicer than some of the stuff in stores if I want anything.

[Raven]

2. I can't figure out why this is news. Most people have lost 30% of

their savings; many people cannot make their mortgage payments; many people are swimming in CC debt; job losses are huge and more looming. Why are the financial gurus suprised that regular folks have thrown up their hands and called it quits?

[geckosfeet]

3. "Consumer led recession" - oh now that's rich. It's the consumers fault.

The consumer, on a scale grander than any common thief could imagine, has been fleeced. Consumers have literally had their life savings embezzled from them. The value of everything that they own has been diminished through corruption, political policy, greed, mismanagement and regulatory incompetence.

Yet it is their fault. Who writes this shit. What world are they living in. We have to push back people. Push them back under the rocks that they crawled out from.

on edit - punctuation, sp. various proofing edits

[lib2DaBone]

4. I like the idea of 'push back'........

.. I think the problem lies with our MSM (main stream media). They are so totally corporate owned information whores... that spew propaganda 24/7.

We need to undo all the damage that Colin Powell's kid (Michael Powell) did while he was at the FCC.

One corporation can not own every radio station in the country. We do not have a chance unless we can unlock media ownership... even if it takes lawsuits, demonstrations or anything else we can think of.




edit spelling

[geckosfeet]

5. MSM - propaganda arms for various corporate entities.

They are just the PR channel for corporate entities.

I am not sure how you unlock the media from its corporate ownership. It will take much more than lawsuits and demonstrations. The corporate masters are not going to give up their propaganda machines without a fight. They know it their most effective way to control the consumer.

[tech3149]

6. How much did these people pay for their education?

I'm just a poor fool who went to a tech school because I couldn't afford the colleges I would have preferred.

From my humble point of view, if I don't have money I can't spend it. Can you get more simple than that? Any two digit IQ can understand that concept.

[high density]

7. How should we consume when we're laid off or constantly threatened with job loss?

I've survived two rounds of layoffs at work, but the fact remains that six months from now they will probably want to cut more "bodies." The prudent thing for people to do is to increase their cash reserves to cover necessary expenses should they lose their jobs. I think you probably need at least 6 months worth of expenses saved up, and I know I don't have that at this point.

[The2ndWheel]

8. The only way we're going to decrease our environmental impact

Increasing the efficiency of our use of energy has never resulted in less energy consumed. Switching what kind of energy we use has never resulted in less energy consumed.

The only thing that works is having the price of the energy increase, and having the price of the products that are made from that energy increase. That is of course the exact opposite of what we do though. The cheaper the energy, the greater the impact. We will never escape that.

[cherokeeprogressive]

9. I thought consumerism was bad. n/t