Peter Blane


Queen

Posted in Consumer Confidence,Finances by wusspett on September 11, 2009

I was going to call the title, “another one bites the dust”, but I think the band deserves more credit!

Anyway, I was thinking about the current mortgage situation because a good friend of mine is in the process of closing on a house with his fiance.  There is a lot of positive news out there: Ben Bernanke, bottoming housing market, low interest rates, etc. It is all trying to raise the consumer confidence to try and get people spending again.  This is due to the beliefs held by Timothy Geithner and Larry Summers (just read the last paragraph of that link if you want the gist) that the main purpose of the average U.S. Citizen is to take on debt.

Taking that into consideration, it appears that the average U.S. Citizen is not being fooled.  We have a positive savings rate, negative consumer confidence, and new spending habits that are scaring retailers.  Although, a lot of the decrease probably has to do with the fact that unemployment is sky high along with the amount of people who can’t pay their mortgage.

I shouldn’t write much more because it’s going to take forever to go through all those links and watch that video about mosquitoes.  I think you see my point though: we’re still in trouble, and it has only just begun.

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