Posted on 09/15/2010 7:57:46 AM PDT by blam
20 Signs That The American Consumer Is Now Completely Tapped Out
Michael Snyder, The Economic Collapse
Sep. 15, 2010, 10:09 AM
Many economists have been mystified that even though the recession is "over", American consumers have not opened their wallets and started spending again like they normally do at the end of a recession. News report after news report has encouraged Americans to grab their credit cards and to head out to the stores and start spending again, but it just is not happening.
Click here to see the signs >
So why are things different this time? Well, for one thing there is a lot of fear in the air. Poll after poll after poll shows that faith in the economy has collapsed and that large numbers of Americans fear that things are going to get even worse for the economy soon. But for millions of other Americans there is another problem - they couldn't spend more money if they wanted to.
The truth is that living on credit for decades has caught up with us as a nation. Americans are absolutely drowning in mortgage debt, car loans, credit card debt and student loan debt. As wages have stagnated, credit has enabled many of us to pursue the American Dream and to live far beyond our means, but that doesn't last forever. Now tens of millions of Americans are completely and totally tapped out. But without the return of the voracious American "consumer" there is not going to be a full economic "recovery".
For decades, the American consumer has always returned with a vengeance. Continually expanding debt loads have fueled a level of prosperity that most of humanity only dreams of. But unfortunately, no debt bubble lasts forever.
Now the consumer debt bubble in America
[snip
(Excerpt) Read more at businessinsider.com ...
Isn’t it about time we learned that simply buying other people’s stuff doesn’t constitute and economy?
looks like ground preparation work for the Obama October Surprise (cap credit card interest and bank fees, forgive student debt, freeze mortgage foreclosures and require cramdowns, etc. etc.)
Yes. Our economy is now something like 70% based on consumer spending, and that’s way too much for a healthy economy, especially when you have the biggest generation in world history heading towards retirement when people naturally spend less.
So when does the deflation start?
Your comment supports another reason why dems will try to steal money from the elderly... we've got to vote them out before it's too late.
Many economists have been mystified that even though the recession is “over”, American consumers have not opened their wallets and started spending again.....
Jeez Louise!....Are you serious?...The mystified economists need to look no further than the White House!....It’s not business as usual you bunch of idiots!!!
ahhh...buying and selling of stuff IS the economy.
“Making” stuff is part of it, but without the buying and selling, it ain’t going to move.
The problem is that people are sick and tired of being sick and tired. I know in our house, we are being very careful about what we spend. And we are paying cash for everything. No cars, no vacations, no nothing unless we can pay cash.
THAT is why things are slowing down. WE are slowing down.
AND....as the baby boomers move towards retirement, they are simply not having to spend the money on stuff. I dont have to pay for vacations because I inherited a great vacation home from my parents. I dont have the back to school costs, because my kids have jobs. I don’t have new car expenses because I take care of my car and will not buy a new one again....for many years.
My 401(k) is down about 40% from where it was a few years ago. I am working hard to keep the debt down so that I wont NEED as much when I retire.
There is a shift occurring, and I am surprised by people being surprised.
Joe Biden's 29% + credit card interest deal (he represents the credit card service bureaus you know) is not letting the economy restart.
Wow!~
Did I ever miss that memo!
Didn't W partner up with Biden on bankruptcy reform?
The truth is that as more Americans walk away from their debt, they'll have more money to spend in the here and now.
Someone please inform my wife...
Some neat images at least.
The deflation has already started - look at the asking price of houses in your neighborhood that have had “For Sale” signs up for months...do you really think they are “worth” the asking price?
Stopping the overconsumption party is necessary, along with a return to savings instead of spending. The problem is, the eventual recovery will require exactly the opposite public policy that Obama is implementing - tax cuts rather than tax increases, less gov’t spending instead of more, building confidence in private investment rather than scaring the hell out of business with whatever the next shoe to drop will be. Just like Roosevelt’s gummint programs prolonged the Great Depression...
Gummint is the problem, not the solution. Tell me when that starts to become the guiding principle behind public policy and I’ll tell you when the economy will start to recover.
I must live in a prospersous section of the country. Where I live:
- restaurants are packed most nights; lines on weekends;
- Starbucks is packed
- parents are planning on sending their kids to college
- seems like every kid has braces
- kids are enrolled in (non-school) activities out the wazoo
- people are traveling out of the country for vacations
- people attend pro sporting events regularly; stadiums are sold out
- people are dropping big bucks for concerts, theater
My wife and I seem to be the only people driving older cars, putting off home repairs, dropping kids’ activities, taking local vacations, eating at home.
We have also cut way back. I had plans to remodel our home. We could use a new vehicle but I’ll be dammed if I’ll spend $40-50 grand on a new truck or spend a fortune on a remodel. We don’t spend anything we don’t have to. Actually, it’s kind of nice not to have to worry about that stuff any longer. I even cut my own firewood, when I use to buy it every year. It feels good to go out and work with a chain saw. I’ll put a new engine and tranny in my old truck rather than finance $40 grand.
It was Biden's doing.
Biden must now suffer existential angst!
“””I must live in a prospersous section of the country. Where I live:
- restaurants are packed most nights; lines on weekends;
- Starbucks is packed
- parents are planning on sending their kids to college
- seems like every kid has braces
- kids are enrolled in (non-school) activities out the wazoo
- people are traveling out of the country for vacations
- people attend pro sporting events regularly; stadiums are sold out
- people are dropping big bucks for concerts, theater””””
where the heck are you? 1950?
I’ve been saying for years that some of our neighbors must be embezzling money from somewhere to be taking annual trips to both Disneyworld and the Jersey Shore all while sending their kids to private schools and driving Volvos and Lexuses. Turns out at least some of them were doing the refinance ATM. It’ll be interesting to see what happens to them now that their home equity cash cows have been slaughtered.
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