Thus worries Joe LaVorgna...
He says there's a 'psychological free-fall", and that things are collapsing. I rather tend to agree.
But the problem is not just psychological (sorry Joe) - it's very, very real. And very sad. And it begins and ends with the 'consumer'. As we've noted before, folks have no savings, no equity - having been hammered in the twin crashes of stocks and real estate - cannot get credit (even if they wanted it, which they most assuredly do not), and are facing an epic employment crisis. To mention a few little nagging realities. Did I mention income and wage stagnation? The collapse of class mobility? The failure of k-12 education?
Indeed, It is worse than you think it is
Mostly cuz folks in the chattering class have not a clue about that engine of the economy - consumers. They believe that consumers can be lured, like puppies, to consume again. Wrong, and endlessly so.
"Consumers" are no longer such, and never again will be (at least in my most hopeful dreams).... Can us not be quaint and call them (us) what, Citizens? Parents? Patriots?
Against federal usury laws for credit cards
5 hours ago
Great point about what to call people who not only consume, but play, pray, talk, walk, sing, sign and do lots of things besides buy things and use them up. Let's call the 'people' or get more specific when it's necessary. I'm signing off on calling them 'consumers', personally and professionally.
ReplyDelete- Abelardo