Sunday, Dec 07, 2008
Consumer spending, the backbone of the U.S. economy, has been battered, if not broken.
MarketWatch: Retail sales dropping like a rock
The worsening recession is now in a self-reinforcing downward spiral, as the weak economy leads to reduced spending and tighter credit, leading to further job losses and even less spending.
"Weakness has spread from housing to Wall Street to Main Street," wrote economists for UBS. "It is now effectively feeding on itself."
"The sharp slide in economic activity that began in October looks to have deepened in November," wrote Seamus Smyth, an economist for Goldman Sachs.
Posted by gardeniadotnet @ 10:25 PM (307 views) Add Comment
2 Comments
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1. alan said...
"Holiday sales will likely decline for the first time on record, falling as much as 2%, said Wachovia's economists".
Hardly a disaster, then!
2. Big Friendly Bear said...
"[The weakness] is now [...] feeding itself."
The opposite of a boom, then.