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  • June 9, 2008 at 10:02 PM #12995
    HarryBosch
    Participant

    Bouncing around the internet I came across this article. It seems to encompass all of the effects of a declining dollar and identifies American’s return to traditional spending patterns.

    http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2008/04/27/MNUJ109A76.DTL

    “We’re seeing the birth pangs of a new economic structure,” said Neal Soss, chief economist for the securities firm Credit Suisse First Boston. “The next year or two or three will be about the transition to a new equilibrium. Consumption by households will grow more slowly than their incomes, which is the exact opposite of the last 25 years when consumption grew faster than incomes.”

    “Standards of consumption have to fall,” said Stanford University economist Ronald McKinnon. “The burden really falls on households.”

    In places such as Asia, where Uncle Sam long wagged his finger at nations that mismanaged their economies, “there is a peculiar sense of satisfaction that the United States has received its comeuppance,” Eichengreen said.

    Squeezed by food and energy prices, tight credit, stagnant incomes and falling home and stock values, many consumers are throttling back. Here’s what’s in and what’s out in the new economic order.

    IN                                   OUT
    Saving                         Borrowing
    Cooking at home          Eating out
    Fixing the old car          New car
    Staying at home           Foreign vacations
    20 percent down           No down payment
    Debit cards                  Credit cards
    Working past 65           Early retirement
    Library                         Bookstore
    Tap water                     Bottled water
    BART                           Bay Bridge
    Patching                       Remodeling
    Public park                   Theme park
    Eyeglasses                   Lasik surgery
    Poker night                  Weekend in Vegas

    June 9, 2008 at 10:46 PM #220715
    DWCAP
    Participant

    First off, True. We need to start selling more, saving more, and spending less. People wont like that, but it is something that we need to do. Now the question is if we can get leadership that can help with that, or more of the same old crap.
    Second, look at the source. BudgetSavvyMag.com. Dont forget who this piece is being written for.
    Third, well see what fingers are wagging when Americans stop buying as much cheap Chinese crap and expenisive European luxeries. What so many econ reporters forget to mention is that the strength of these new curriencies is tied to their export led budget surpluses. Most rely on American greed to fund their bloated inefficient gov’s (India, Venezula) or their popular social programs (Germany, France, Saudi Arabia). If we stop buying, they stop selling and things get nasty. World economic progress has been moving at a historically screaming rate, it may have to slow.

    June 9, 2008 at 10:46 PM #220813
    DWCAP
    Participant

    First off, True. We need to start selling more, saving more, and spending less. People wont like that, but it is something that we need to do. Now the question is if we can get leadership that can help with that, or more of the same old crap.
    Second, look at the source. BudgetSavvyMag.com. Dont forget who this piece is being written for.
    Third, well see what fingers are wagging when Americans stop buying as much cheap Chinese crap and expenisive European luxeries. What so many econ reporters forget to mention is that the strength of these new curriencies is tied to their export led budget surpluses. Most rely on American greed to fund their bloated inefficient gov’s (India, Venezula) or their popular social programs (Germany, France, Saudi Arabia). If we stop buying, they stop selling and things get nasty. World economic progress has been moving at a historically screaming rate, it may have to slow.

    June 9, 2008 at 10:46 PM #220826
    DWCAP
    Participant

    First off, True. We need to start selling more, saving more, and spending less. People wont like that, but it is something that we need to do. Now the question is if we can get leadership that can help with that, or more of the same old crap.
    Second, look at the source. BudgetSavvyMag.com. Dont forget who this piece is being written for.
    Third, well see what fingers are wagging when Americans stop buying as much cheap Chinese crap and expenisive European luxeries. What so many econ reporters forget to mention is that the strength of these new curriencies is tied to their export led budget surpluses. Most rely on American greed to fund their bloated inefficient gov’s (India, Venezula) or their popular social programs (Germany, France, Saudi Arabia). If we stop buying, they stop selling and things get nasty. World economic progress has been moving at a historically screaming rate, it may have to slow.

    June 9, 2008 at 10:46 PM #220858
    DWCAP
    Participant

    First off, True. We need to start selling more, saving more, and spending less. People wont like that, but it is something that we need to do. Now the question is if we can get leadership that can help with that, or more of the same old crap.
    Second, look at the source. BudgetSavvyMag.com. Dont forget who this piece is being written for.
    Third, well see what fingers are wagging when Americans stop buying as much cheap Chinese crap and expenisive European luxeries. What so many econ reporters forget to mention is that the strength of these new curriencies is tied to their export led budget surpluses. Most rely on American greed to fund their bloated inefficient gov’s (India, Venezula) or their popular social programs (Germany, France, Saudi Arabia). If we stop buying, they stop selling and things get nasty. World economic progress has been moving at a historically screaming rate, it may have to slow.

    June 9, 2008 at 10:46 PM #220877
    DWCAP
    Participant

    First off, True. We need to start selling more, saving more, and spending less. People wont like that, but it is something that we need to do. Now the question is if we can get leadership that can help with that, or more of the same old crap.
    Second, look at the source. BudgetSavvyMag.com. Dont forget who this piece is being written for.
    Third, well see what fingers are wagging when Americans stop buying as much cheap Chinese crap and expenisive European luxeries. What so many econ reporters forget to mention is that the strength of these new curriencies is tied to their export led budget surpluses. Most rely on American greed to fund their bloated inefficient gov’s (India, Venezula) or their popular social programs (Germany, France, Saudi Arabia). If we stop buying, they stop selling and things get nasty. World economic progress has been moving at a historically screaming rate, it may have to slow.

    June 10, 2008 at 8:00 AM #220972
    34f3f3f
    Participant

    Yes, I think this has a true ring to it, and is a kind of housing correction from the bottom up, but I don’t think the two lists are mutually exclusive. If you stay at home, and save you can afford to take that vacation. Buying a car new has always been a bad financial idea. What’s interesting is the credit to debit card swap. Is that really an affordability issue, or a fingers burnt issue?

    June 10, 2008 at 8:00 AM #220953
    34f3f3f
    Participant

    Yes, I think this has a true ring to it, and is a kind of housing correction from the bottom up, but I don’t think the two lists are mutually exclusive. If you stay at home, and save you can afford to take that vacation. Buying a car new has always been a bad financial idea. What’s interesting is the credit to debit card swap. Is that really an affordability issue, or a fingers burnt issue?

    June 10, 2008 at 8:00 AM #220921
    34f3f3f
    Participant

    Yes, I think this has a true ring to it, and is a kind of housing correction from the bottom up, but I don’t think the two lists are mutually exclusive. If you stay at home, and save you can afford to take that vacation. Buying a car new has always been a bad financial idea. What’s interesting is the credit to debit card swap. Is that really an affordability issue, or a fingers burnt issue?

    June 10, 2008 at 8:00 AM #220909
    34f3f3f
    Participant

    Yes, I think this has a true ring to it, and is a kind of housing correction from the bottom up, but I don’t think the two lists are mutually exclusive. If you stay at home, and save you can afford to take that vacation. Buying a car new has always been a bad financial idea. What’s interesting is the credit to debit card swap. Is that really an affordability issue, or a fingers burnt issue?

    June 10, 2008 at 8:00 AM #220810
    34f3f3f
    Participant

    Yes, I think this has a true ring to it, and is a kind of housing correction from the bottom up, but I don’t think the two lists are mutually exclusive. If you stay at home, and save you can afford to take that vacation. Buying a car new has always been a bad financial idea. What’s interesting is the credit to debit card swap. Is that really an affordability issue, or a fingers burnt issue?

    June 10, 2008 at 1:24 PM #220880
    scaredyclassic
    Participant

    recommended reading. TEH TIGHTWAD GAZETTE, available in bookstores.

    I bought a new car in 1988, has it ever since. wasn’t a bad idea.

    Drink Heavily.

    June 10, 2008 at 1:24 PM #220979
    scaredyclassic
    Participant

    recommended reading. TEH TIGHTWAD GAZETTE, available in bookstores.

    I bought a new car in 1988, has it ever since. wasn’t a bad idea.

    Drink Heavily.

    June 10, 2008 at 1:24 PM #220991
    scaredyclassic
    Participant

    recommended reading. TEH TIGHTWAD GAZETTE, available in bookstores.

    I bought a new car in 1988, has it ever since. wasn’t a bad idea.

    Drink Heavily.

    June 10, 2008 at 1:24 PM #221024
    scaredyclassic
    Participant

    recommended reading. TEH TIGHTWAD GAZETTE, available in bookstores.

    I bought a new car in 1988, has it ever since. wasn’t a bad idea.

    Drink Heavily.

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