Question about consumer spending?

[novice1027]

I keep hearing about how consumer spending is still up, so we have nothing to worry about, no recession on the horizon, because “we are still spending, spending, spending.”
My question, one that I never hear being raised on the MSM is….If consumers are all still spending but it is primarily on credit, doesn’t that change things? No one ever seems to ask this question. It would appear to me that at some time when it catches up, not only is the spending going to stop, but everyone will be in dept up to their eyeballs. It seems all to clear to me, but I’m just a “novice” in this arena.
Any thoughts?

[bubba99]

First, the number is B.S.

In the breakdown of consumer purchases, spending on non-durable goods which include food and gasoline was up 2.0 pct, while spending on durables rose just 0.3 pct.

The same pattern appears in the inflation statistics. The PCE index for non-durables rose 1.4 pct, while the price indexes for durables actually fell 0.2 pct, and the index for services was up 0.3 pct.

That suggests the 1.1 pct spending jump was inflated by the price effects of more expensive energy and food. Real, inflation-adjusted spending was up just over half as much, 0.5 pct.

Worse still for consumers, their disposable personal incomes — after inflation and taxes — fell 0.3 pct, the worst reading since a minus 0.6 pct in April of this year.

above from:
http://www.forbes.com/afxnewslimited/feeds/afx/2007/12/21/afx4467450.html

So yes, maybe more credit card debt, and maybe way more cc interest because of rate increases on borrowers, but all in all, just another chapter in confuse and confound the american public.

[novice1027]

Thanks Bubba,
Why don’t they include food and gasoline in the numbers? Or is that just more of the same BS? The 2 things that we can’t do without and the prices are rising all the time. The more I learn, sometimes the more confused I become, lol.

[nostradamus]

It must be these consumers doing the spending:

http://www.cbsnews.com/stories/2007/12/23/business/main3643715.shtml

[novice1027]

“But you always have to pay the piper, and that can be a very painful process.”
I think the fat lady is starting to warm up her vocal cords!
I am constantly amazed at all of the admitting gals where I work, they make around $15/hr and most of them carry Coach bags. It boggles my mind. Here I sit making way more money than they do, and I about had a stroke paying $70 for a purse, ONCE! and they come in on a regular basis having just got back from the Coach store. Boy is it going to get ugly.

[nostradamus]

Same here, I had a hard time buying a Mazda (even though I needed it and haven’t bought a new car in 10 years) yet I know waitresses and receptionists who drive brand-new BMWs. I cannot fathom where this ability to turn a blind eye on basic financials comes from. I think it would be a great project for a psych major to study this modern phenomenon. Is it a testament to the success of marketing techniques? Or are people just getting worse at math? Do they have a sense of entitlement? Are they expecting a bailout or a rich prince charming to come along to foot the bill?

[novice1027]

Maybe it’s the math issue. I love to give the sales clerk that extra 16 cents for a $4.66 sale and watch their eyes start to spiral in there head. I guess I need to get a life, but it is fun to watch the panice set in, besides I hate pennies, lol

[novice1027]

Oh and the other thing is the Iphone, half of the girls have those, and I’m killing myself to try to figure out how to get my husband’s and my cell phone bill below $70/month. I tried everything and I can’t get it any cheaper and it really fries me, go figure.

[drunkle]

i’ve been getting credit card offers left and right lately, at least since my credit freeze expired.

waitresses (and bartenders) can make pretty good money, upwards of 60k/year. and leasing is cheaper on a monthly basis.

and if mommy and daddy had housing equity to blow, well…

if anything, the economy of the last 7-8 years has been running on glass slipper cinderella fumes. everything is great, the economy is great, the terrorists have lost, credit for everyone. people are generally stupid and don’t bother themselves with bad thoughts like affordability and responsibility. no, they think happy thoughts like 0% introductory rates and housing never goes down.

[drunkle]

i’ve been getting credit card offers left and right lately, at least since my credit freeze expired.

waitresses (and bartenders) can make pretty good money, upwards of 60k/year. and leasing is cheaper on a monthly basis.

and if mommy and daddy had housing equity to blow, well…

if anything, the economy of the last 7-8 years has been running on glass slipper cinderella fumes. everything is great, the economy is great, the terrorists have lost, credit for everyone. people are generally stupid and don’t bother themselves with bad thoughts like affordability and responsibility. no, they think happy thoughts like 0% introductory rates and housing never goes down.

[drunkle]

i’ve been getting credit card offers left and right lately, at least since my credit freeze expired.

waitresses (and bartenders) can make pretty good money, upwards of 60k/year. and leasing is cheaper on a monthly basis.

and if mommy and daddy had housing equity to blow, well…

if anything, the economy of the last 7-8 years has been running on glass slipper cinderella fumes. everything is great, the economy is great, the terrorists have lost, credit for everyone. people are generally stupid and don’t bother themselves with bad thoughts like affordability and responsibility. no, they think happy thoughts like 0% introductory rates and housing never goes down.

[drunkle]

i’ve been getting credit card offers left and right lately, at least since my credit freeze expired.

waitresses (and bartenders) can make pretty good money, upwards of 60k/year. and leasing is cheaper on a monthly basis.

and if mommy and daddy had housing equity to blow, well…

if anything, the economy of the last 7-8 years has been running on glass slipper cinderella fumes. everything is great, the economy is great, the terrorists have lost, credit for everyone. people are generally stupid and don’t bother themselves with bad thoughts like affordability and responsibility. no, they think happy thoughts like 0% introductory rates and housing never goes down.

[drunkle]

i’ve been getting credit card offers left and right lately, at least since my credit freeze expired.

waitresses (and bartenders) can make pretty good money, upwards of 60k/year. and leasing is cheaper on a monthly basis.

and if mommy and daddy had housing equity to blow, well…

if anything, the economy of the last 7-8 years has been running on glass slipper cinderella fumes. everything is great, the economy is great, the terrorists have lost, credit for everyone. people are generally stupid and don’t bother themselves with bad thoughts like affordability and responsibility. no, they think happy thoughts like 0% introductory rates and housing never goes down.

[novice1027]

Oh and the other thing is the Iphone, half of the girls have those, and I’m killing myself to try to figure out how to get my husband’s and my cell phone bill below $70/month. I tried everything and I can’t get it any cheaper and it really fries me, go figure.

[novice1027]

Oh and the other thing is the Iphone, half of the girls have those, and I’m killing myself to try to figure out how to get my husband’s and my cell phone bill below $70/month. I tried everything and I can’t get it any cheaper and it really fries me, go figure.

[novice1027]

Oh and the other thing is the Iphone, half of the girls have those, and I’m killing myself to try to figure out how to get my husband’s and my cell phone bill below $70/month. I tried everything and I can’t get it any cheaper and it really fries me, go figure.

[novice1027]

Oh and the other thing is the Iphone, half of the girls have those, and I’m killing myself to try to figure out how to get my husband’s and my cell phone bill below $70/month. I tried everything and I can’t get it any cheaper and it really fries me, go figure.

[novice1027]

Maybe it’s the math issue. I love to give the sales clerk that extra 16 cents for a $4.66 sale and watch their eyes start to spiral in there head. I guess I need to get a life, but it is fun to watch the panice set in, besides I hate pennies, lol

[novice1027]

Maybe it’s the math issue. I love to give the sales clerk that extra 16 cents for a $4.66 sale and watch their eyes start to spiral in there head. I guess I need to get a life, but it is fun to watch the panice set in, besides I hate pennies, lol

[novice1027]

Maybe it’s the math issue. I love to give the sales clerk that extra 16 cents for a $4.66 sale and watch their eyes start to spiral in there head. I guess I need to get a life, but it is fun to watch the panice set in, besides I hate pennies, lol

[novice1027]

Maybe it’s the math issue. I love to give the sales clerk that extra 16 cents for a $4.66 sale and watch their eyes start to spiral in there head. I guess I need to get a life, but it is fun to watch the panice set in, besides I hate pennies, lol

[nostradamus]

Same here, I had a hard time buying a Mazda (even though I needed it and haven’t bought a new car in 10 years) yet I know waitresses and receptionists who drive brand-new BMWs. I cannot fathom where this ability to turn a blind eye on basic financials comes from. I think it would be a great project for a psych major to study this modern phenomenon. Is it a testament to the success of marketing techniques? Or are people just getting worse at math? Do they have a sense of entitlement? Are they expecting a bailout or a rich prince charming to come along to foot the bill?

[nostradamus]

Same here, I had a hard time buying a Mazda (even though I needed it and haven’t bought a new car in 10 years) yet I know waitresses and receptionists who drive brand-new BMWs. I cannot fathom where this ability to turn a blind eye on basic financials comes from. I think it would be a great project for a psych major to study this modern phenomenon. Is it a testament to the success of marketing techniques? Or are people just getting worse at math? Do they have a sense of entitlement? Are they expecting a bailout or a rich prince charming to come along to foot the bill?

[nostradamus]

Same here, I had a hard time buying a Mazda (even though I needed it and haven’t bought a new car in 10 years) yet I know waitresses and receptionists who drive brand-new BMWs. I cannot fathom where this ability to turn a blind eye on basic financials comes from. I think it would be a great project for a psych major to study this modern phenomenon. Is it a testament to the success of marketing techniques? Or are people just getting worse at math? Do they have a sense of entitlement? Are they expecting a bailout or a rich prince charming to come along to foot the bill?

[nostradamus]

Same here, I had a hard time buying a Mazda (even though I needed it and haven’t bought a new car in 10 years) yet I know waitresses and receptionists who drive brand-new BMWs. I cannot fathom where this ability to turn a blind eye on basic financials comes from. I think it would be a great project for a psych major to study this modern phenomenon. Is it a testament to the success of marketing techniques? Or are people just getting worse at math? Do they have a sense of entitlement? Are they expecting a bailout or a rich prince charming to come along to foot the bill?

[novice1027]

“But you always have to pay the piper, and that can be a very painful process.”
I think the fat lady is starting to warm up her vocal cords!
I am constantly amazed at all of the admitting gals where I work, they make around $15/hr and most of them carry Coach bags. It boggles my mind. Here I sit making way more money than they do, and I about had a stroke paying $70 for a purse, ONCE! and they come in on a regular basis having just got back from the Coach store. Boy is it going to get ugly.

[novice1027]

“But you always have to pay the piper, and that can be a very painful process.”
I think the fat lady is starting to warm up her vocal cords!
I am constantly amazed at all of the admitting gals where I work, they make around $15/hr and most of them carry Coach bags. It boggles my mind. Here I sit making way more money than they do, and I about had a stroke paying $70 for a purse, ONCE! and they come in on a regular basis having just got back from the Coach store. Boy is it going to get ugly.

[novice1027]

“But you always have to pay the piper, and that can be a very painful process.”
I think the fat lady is starting to warm up her vocal cords!
I am constantly amazed at all of the admitting gals where I work, they make around $15/hr and most of them carry Coach bags. It boggles my mind. Here I sit making way more money than they do, and I about had a stroke paying $70 for a purse, ONCE! and they come in on a regular basis having just got back from the Coach store. Boy is it going to get ugly.

[novice1027]

“But you always have to pay the piper, and that can be a very painful process.”
I think the fat lady is starting to warm up her vocal cords!
I am constantly amazed at all of the admitting gals where I work, they make around $15/hr and most of them carry Coach bags. It boggles my mind. Here I sit making way more money than they do, and I about had a stroke paying $70 for a purse, ONCE! and they come in on a regular basis having just got back from the Coach store. Boy is it going to get ugly.

[nostradamus]

It must be these consumers doing the spending:

http://www.cbsnews.com/stories/2007/12/23/business/main3643715.shtml

[nostradamus]

It must be these consumers doing the spending:

http://www.cbsnews.com/stories/2007/12/23/business/main3643715.shtml

[nostradamus]

It must be these consumers doing the spending:

http://www.cbsnews.com/stories/2007/12/23/business/main3643715.shtml

[nostradamus]

It must be these consumers doing the spending:

http://www.cbsnews.com/stories/2007/12/23/business/main3643715.shtml

[novice1027]

Thanks Bubba,
Why don’t they include food and gasoline in the numbers? Or is that just more of the same BS? The 2 things that we can’t do without and the prices are rising all the time. The more I learn, sometimes the more confused I become, lol.

[novice1027]

Thanks Bubba,
Why don’t they include food and gasoline in the numbers? Or is that just more of the same BS? The 2 things that we can’t do without and the prices are rising all the time. The more I learn, sometimes the more confused I become, lol.

[novice1027]

Thanks Bubba,
Why don’t they include food and gasoline in the numbers? Or is that just more of the same BS? The 2 things that we can’t do without and the prices are rising all the time. The more I learn, sometimes the more confused I become, lol.

[novice1027]

Thanks Bubba,
Why don’t they include food and gasoline in the numbers? Or is that just more of the same BS? The 2 things that we can’t do without and the prices are rising all the time. The more I learn, sometimes the more confused I become, lol.

[bubba99]

First, the number is B.S.

In the breakdown of consumer purchases, spending on non-durable goods which include food and gasoline was up 2.0 pct, while spending on durables rose just 0.3 pct.

The same pattern appears in the inflation statistics. The PCE index for non-durables rose 1.4 pct, while the price indexes for durables actually fell 0.2 pct, and the index for services was up 0.3 pct.

That suggests the 1.1 pct spending jump was inflated by the price effects of more expensive energy and food. Real, inflation-adjusted spending was up just over half as much, 0.5 pct.

Worse still for consumers, their disposable personal incomes — after inflation and taxes — fell 0.3 pct, the worst reading since a minus 0.6 pct in April of this year.

above from:
http://www.forbes.com/afxnewslimited/feeds/afx/2007/12/21/afx4467450.html

So yes, maybe more credit card debt, and maybe way more cc interest because of rate increases on borrowers, but all in all, just another chapter in confuse and confound the american public.

[bubba99]

First, the number is B.S.

In the breakdown of consumer purchases, spending on non-durable goods which include food and gasoline was up 2.0 pct, while spending on durables rose just 0.3 pct.

The same pattern appears in the inflation statistics. The PCE index for non-durables rose 1.4 pct, while the price indexes for durables actually fell 0.2 pct, and the index for services was up 0.3 pct.

That suggests the 1.1 pct spending jump was inflated by the price effects of more expensive energy and food. Real, inflation-adjusted spending was up just over half as much, 0.5 pct.

Worse still for consumers, their disposable personal incomes — after inflation and taxes — fell 0.3 pct, the worst reading since a minus 0.6 pct in April of this year.

above from:
http://www.forbes.com/afxnewslimited/feeds/afx/2007/12/21/afx4467450.html

So yes, maybe more credit card debt, and maybe way more cc interest because of rate increases on borrowers, but all in all, just another chapter in confuse and confound the american public.

[bubba99]

First, the number is B.S.

In the breakdown of consumer purchases, spending on non-durable goods which include food and gasoline was up 2.0 pct, while spending on durables rose just 0.3 pct.

The same pattern appears in the inflation statistics. The PCE index for non-durables rose 1.4 pct, while the price indexes for durables actually fell 0.2 pct, and the index for services was up 0.3 pct.

That suggests the 1.1 pct spending jump was inflated by the price effects of more expensive energy and food. Real, inflation-adjusted spending was up just over half as much, 0.5 pct.

Worse still for consumers, their disposable personal incomes — after inflation and taxes — fell 0.3 pct, the worst reading since a minus 0.6 pct in April of this year.

above from:
http://www.forbes.com/afxnewslimited/feeds/afx/2007/12/21/afx4467450.html

So yes, maybe more credit card debt, and maybe way more cc interest because of rate increases on borrowers, but all in all, just another chapter in confuse and confound the american public.

[bubba99]

First, the number is B.S.

In the breakdown of consumer purchases, spending on non-durable goods which include food and gasoline was up 2.0 pct, while spending on durables rose just 0.3 pct.

The same pattern appears in the inflation statistics. The PCE index for non-durables rose 1.4 pct, while the price indexes for durables actually fell 0.2 pct, and the index for services was up 0.3 pct.

That suggests the 1.1 pct spending jump was inflated by the price effects of more expensive energy and food. Real, inflation-adjusted spending was up just over half as much, 0.5 pct.

Worse still for consumers, their disposable personal incomes — after inflation and taxes — fell 0.3 pct, the worst reading since a minus 0.6 pct in April of this year.

above from:
http://www.forbes.com/afxnewslimited/feeds/afx/2007/12/21/afx4467450.html

So yes, maybe more credit card debt, and maybe way more cc interest because of rate increases on borrowers, but all in all, just another chapter in confuse and confound the american public.

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