http://www.bloomberg.com/apps/news?pid=20601087&sid=a_xPp7Pzgs5E
Mounting unemployment threatens to restrain consumer spending entering the Christmas-holiday shopping season. Without a sustained rebound in the biggest part of the economy, the emerging recovery may fall short of expectations.
“There really isn’t any scope for us to see sustained gains in consumer spending for quite some time,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc., a New York forecasting firm. “The labor market remains very weak.”
Stocks dropped after the report, erasing earlier gains, on concern consumers will cut back. The Standard & Poor’s 500 Index was down 0.2 percent to 1,065.05 at 10:21 a.m. in New York. Treasury securities rallied, pushing the yield on the 10-year note down to 3.52 percent from 3.56 percent late yesterday.
Our economic difficulties are not over, regardless what politicians may tell you. We still have a high jobless rate, consumer confidence is low, we still haven't fixed the mortgage crisis, and the treasury printed trillions of new dollars which will cause inflation and HAS caused a stock market bubble. There is far more going on out here than the politicians want you to think about.
So please, do think about it.
Be interesting to see what rabbit gets pulled out the hat this time. An organizing for america food and toy drive? Special supplemental advance tax credit? Most likely, though, public option health insurance, "you may not be working, those X-mas soydogs and corn bread were't festive, but you got your health".
ReplyDeleteThe Obama machine has been very good at spinning an alternative reality