bad news for Big O

[JohnnyD]

Originally Posted by RIJIMMY

tax cuts are a one sided disucssion. Obama has opted to "give" money to promote the economy via the stimulus package. so we increase debt and reward....who? Who is benefitting?
Tax cuts reward those that WORK. Those that work, spend! Those that provide goods/services hire. Those that show a profit by working and selling pay taxes. It all works and most importantly encourages competition and hard work.

No one trusts the economy right now. The market is in a relative state of purgatory, consumers are saving more than spending. I don't think consumers will start spending until it appears things have actually improved. The continuing of terrible unemployment rates (actual rates are reported over 20%) and the recent increases in fuel prices isn't going to have consumers splurging any time soon.

[RIJIMMY]

Originally Posted by JohnnyD

No one trusts the economy right now. The market is in a relative state of purgatory, consumers are saving more than spending. I don't think consumers will start spending until it appears things have actually improved. The continuing of terrible unemployment rates (actual rates are reported over 20%) and the recent increases in fuel prices isn't going to have consumers splurging any time soon.

I dont agree. Look at the real data. People are spending.

[JohnnyD]

Originally Posted by RIJIMMY

I dont agree. Look at the real data. People are spending.

Just looked up fresh data and you're right about the savings %. Personal savings as a % of income is down a bit. We are coming out of a holiday season though so who knows. It doesn't change my opinion in the rest of that post with regards to overall distrust of the economy and horrible unemployment rates preventing people from really going out and making purchases.

At the end of the first quarter, there will probably be another bump as people get their tax returns, but I can't see consumer spending trending upward significantly any time soon. There are still far too many radicals with the economy and health care.