Dollar’s fall forces new standard of frugality

[HarryBosch]

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

[DWCAP]

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.

[DWCAP]

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.

[DWCAP]

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.

[DWCAP]

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.

[DWCAP]

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.

[34f3f3f]

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?

[34f3f3f]

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?

[34f3f3f]

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?

[34f3f3f]

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?

[34f3f3f]

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?

[scaredyclassic]

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.

[scaredyclassic]

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.

[scaredyclassic]

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.

[scaredyclassic]

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.

[Author]

Posts