Wednesday, August 15, 2007

Welcome To La-La Land: "The Consumer Could Actually Be A Drag On The U.S. Economy"

Who's to blame for the current strangling-to-death Bush economy?

You are.

But as the housing market decline moves into its second year, energy prices continue to be high and food prices jump, the consumer could actually be a drag on the U.S. economy.

"Now the consumer makes up about 70 percent of all GDP growth," Steidtmann said. "If that goes from a factor that is boosting growth to one that is (hurting) growth, that could very clearly be a factor that could lead to a recession."

And who's to blame for an impending recession/depression?

Ibidem, Baby!

David Rosenberg, North American economist at Merrill Lynch, pointed out that auto sales have fallen for a record seven months in a row, consumer spending in real terms has stagnated over the February-to-July period, chain store sales were flat sequentially in July and that while employment growth in the nonfarm payroll survey has stayed positive, the separate household survey has shown a stagnant labor market since February.

"There are plenty of signs now suggesting that we may be in the early stages of a consumer-led recession for the first time in 17 years," Rosenberg said in a research report.

Of course, it's never Hoover's the Bush administration's fault.

The only upside?

There should be an abundance of available cardboard boxes for us "unpatriotic consumers" to enjoy.

Best bar bet in the world: Delilah didn't do it.
Judges 16:19--


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