The Great Consumer Crash of 2009

This is a must read for all who think this downturn may be over soon. From all the stuff i have read so far, this is the best summary of the total mess that the USA is in. This is a sad, sad state for a nation to be in.

http://seekingalpha.com/article/90892-the-great-consumer-crash-of-2009?source=front_page_most_popular_articles

Yes. This article is a must read. But those that should read it will be the last ones to do so. It should be read as part of a "home economics" course as a compulsory subject at all high schools. Patterns are set by the senior students before they have left school and continue into their working life.

But when US dollar drops to AU$ 0.50 or 0.10 it will be big kick to their export and as it was in Australia it actually kick started the economy.

If true of course

There are some pretty amazing numbers in the article too, such as mentioned in this quote "The debt induced spending that occurred from 2001 until 2007 accounted for virtually all the GDP growth over this time. Without the mortgage equity withdrawal, the U.S. would have had less than 1% average GDP growth for the entire period."

and this...."Consumers used their credit and debit cards to buy $51 billion of fast food in 2006 according to Carddata. According to the Federal Reserve, 40% of American families spend more than they earn."

:screwy:

Cheers,


CanOz