Posted on 12/13/2007 10:24:32 AM PST by MNJohnnie
Consumers put aside worries about the weak economy and high gasoline prices to storm the shopping malls, pushing up retail sales in November. Wholesale prices shot up by the largest amount in 34 years, which could be a harbinger of higher prices to come for shoppers.
The Commerce Department reported Thursday that retail sales jumped by 1.2% last month, double the gain economists had expected. It was the biggest increase in six months and followed a much weaker 0.2% rise in retail sales in October.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
But, But...I thought the sky was falling.
Woo-hoo! Inflation is back! Break out the polyester and the mood rings!
Consumers are dumba**es.
People are charging like it’s free money.
Wait until we have to bail out the banks due to defaults on credit card debt. You know, if my mortgage was going to take me down anyway, why would I be concerned about charging things on my card?
Who says rate cuts don’t cause inflation?
Thank you, yes I must be a dumba** when Best Buy gives me an interest free “loan” that will be paid off well before the “note” is due. I guess that is “free” money so to speak.
I and my family have been doing our part this year as in years past. We save $$’s throughout the year for gift shopping and if a retailer is going to “give” me money and I don’t have to dip into my till then I’m going to use their money.
To economists that may sound like a credit trap, but for me it’s a trap that I feel I’ve deftly tripped without getting snared.
Besides, if they ever want to collect on the balance, we pay it off and we’ve earned the interest, not the retailer.
SZ
I am sure the Democrats will welcome the news on inflation.
Ben Bernanke is an idiot.
By next month he may be a moron.
The cost of oil products is allowed in wholesale price index.
First it was refi the home to buy stuff, now it’s max out
the crdit card. This can’t go on forever!
“Thank you, yes I must be a dumba**”
#1 - You are too sensitive.
#2 - You aren’t who I’m referring to.
I’m not saying spending money is bad. I’m not saying charging is bad. I am saying charging what you can’t afford, and carrying a balance on a conventional credit card is bad.
Relax.
“First it was refi the home to buy stuff, now it’s max out
the crdit card. This can’t go on forever!”
It won’t. We are seeing the beginning of the end of this nonsense. It’s all going to crash down on people like a house of cards.
Then the MSM will feature countless stories of “victims” who have spent themselves to bankruptcy.
I don’t spend any more than I can pay off at the end of the month. And I am still stylin’ and profiilin’.
Let’s be careful about drawing too much from the headline. One has to look inside the actual data to see what is really going on.
Here’s the Census bureau’s actual breakout:
http://www.census.gov/svsd/www/marts_current.html
Scroll down to see the table of percentage gains vs. prior month and prior year. Yes, we see some nice gains here and there vs. the prior month/year, but one really sticks out: gasoline/fuel. Up 25% in one year, over 6% in one month.
That’s not the result of economic growth - that’s the result of inflation and currency depreciation. Same deal with food prices.
When we look at some of the other categories, cars, department stores, miscellaneous retailers, etc — the picture isn’t as rosy.
This report shows the consumer is OK, but there’s nothing to crow about in here. There’s no huge boom in retail coming as a result of these numbers.
No, I have pretty thick skin and didn’t take offense. It was a bit of sarcasm that’s all.
Cheers and Merry Christmas,
SZ
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