The Cautious Consumer

Just what we need, buying more stuff on credit that costs more and more to service..had a look at changes in credit card rates lately for the average bloke?? Credit is the LAST thing Americans need more of..nor do they need to buy, buy, spend, spend in some parody of an 18th century insand asylum. The death of the Wal Mart employee, trampled by shoppers, is one small anecdoctal point that Americans have lost their minds and their souls and will, in the end pay a huge price for their avarice, silliness, and vapidity. The economic punditry does them no favors by taking seriously the fact Americans are not buying junk as fast as they WERE. IF we do not recreate or return to a more sustainable economic model that does not depend on Prada shopoholics or buying cheap junk at Wal Mart..we are going to go down or become some shadow of BRAZIL or Argentina. Dr. Peter Morici and money guru Peter Shiff are correct, America needs to invest in itself, in R@D, in making stuff the rest ofthe world or that WE want to buy. NO nation, aside from the BRITS have given up as much of their critical manufacturing base as has the US in service to 'evolutionary economics' which is a euphemism for Tulip mania or pet rock economy, signifying silliness and stupidity on our part. NO nation's economy, with the exception of the BRITS has depended as heavily on finanicials, credit, and creating in Buffet's words, weapons of mass destruction in various 'instruments of credit.' What we have is crony capitalism run amuck, the appointment by Obama of Richardson is a case in point, as was Henry Paulson's appointment following all the other Goldman Sachs gurus who have totally messed us up in pursuit of fast, ever growing, hot money 'wealth.' Paulson is the greatest representative of a foreign power in the US, [China} since Armand Hammer played front for Soviet Russia. Cautious consumer??? Better the consumer should start stalking up on canned goods, whiskey, silver or gold if he has extra money, and farmland in North Dakota than in yet one more piece of cheap garbage from China or wherever crap is being produced these days. IF we don't 'get it' and soon, the stock market crash will be the least of our problems, as we will have taken a huge hunk out of national security through trusting politicians and feckless bankers or Wall Street or media pundits whose only concern seems to be a stock market that grows exponentially based on little by hype and high rollers who 'do' the stock market rather than Vegas.

Spent money on Friday, just like every year, mostly driven by wife's desire to get grand kids what they want and a fear it would be gone if she waited. I will say that we don't shop at high end stores (cannot afford it). The crowd was somewhat less then last year and we did not spend as much as last year.

[...] The Cautious Consumer at The Casone Exchange I am concerned about Friday

In and around N.E. MS, and other rural areas, it seems that more folks are in the discount stores, and shopping for sales than normally. Overall traffic seems to be down a bit. Many folks (including myself ) are not buying gifts at all, but making gifts (those who have the knowledge and tools ), or giving cash. I make fancy wood jewelry and cigar boxes, cutting boards, toys, etc. (most of which would retail for $75 and up ) that I give to friends and family for example. Others make similar things, or food baskets (including a deer for the freezer for some ), donate labor, etc. It seems to be that the "consumer", around here anyway, is cutting out the "middle man" where ever possible. There is a large and vibrant underground economy that is growing, especially in rural areas. That may have some repercussions down the road, both positive and negative. I know y'all in the big cities don't normally have the resources or inclination for this sort of thing, and y'all have my sympathy. Y'all go on and buy them "gift cards" and various Chinese junk. Country folks can survive.

I don't know for I stayed home. I am spending about 1/3 of what I have spent over the past few years during Christmas season, and unless I see less than 70% off I will not buy it.

The consumers are not cautious, they are frozen with fear, the only retailer doing good is the one selling beef jerky.

Cheryl___I was born in the depression and grew up having nothing by today`s standards. However, it seems to me that one can be happy with much or with little, as I have experienced both conditions. Yes, one needs to have the basic necessities of life met, but after that more does not automatically bring an extra dose of happiness. A new posssession occasionally is a nice change as long as one knows when to stop accumulating and take time to enjoy what we have already. The incident at the Wal Mart store where people acted like frantic animals to buy a "bargain" they may not have even needed shows something about where consumerism has taken us. Of course a new developement such as the computer was, can add to one`s life if used with some sense and paid for when purchased. However, this idea that we have to have everything available, even when unable to get it without using the magic plastic, is not working any more and people should realize that fact. It appears we are on the brink of another depression in spite of all efforts to turn things around. Consequently, we had better prepare to learn to exist with a much lower standard of living as companies fail, jobs are lost, and the terrific debt situation threatens to overwhelm all of us. Fortunately, we can still enjoy your program, and "Happy Holiday`s" again!

The stores seemed to be just as full. What I do not understand is how sales can be up when the discounts are so large. Would a retailer not have to infact sell a vastly larger number of widgets than last year for revenue to be higher? I think that the numbers are fudged in order to give the consumer a fake confidence to spend more because everybody else did.

I own a small retail clothing store. Traffic was good, but our sales on black friday were off 40% from last year.

I shopped on Saturday afternoon. I was reluctant to go at all because I expected the lines to be long and the stores crowded. I was absolutely shocked to find myself one of just a few shoppers in the store. I think there were more salespeople in the stores than there were customers. I attributed part of that to the fact that the biggest "deal" hours were over, but I did notice that there were still several super saver deals to be had. I admit I am definitely one of the "cautious consumers." I bought what we needed; hats, gloves, mittens, and some warm clothing items for the kids. Yes, there will be a Santa, but he will be bringing more clothes and less toys, items that might not otherwise have found themselves under the tree, but rather put right into the drawers. Why? My retirement fund (although I'm not ready to retire) has been depleted by 40%, my company's business is down, and I want to build some savings in case things get worse. Obviously, I'm not alone.

Around here CC the shoppers were out in force. I was at home with cold but I did watch the black friday coverage. Interesting that the crowds are less. Every reporter on thier beats must've noticed too. But this afternoon I will be Madison,christmas shopping at the Barnes and Noble. So I'm looking forward to it.

Our dishwasher here at home died, last Saturaday we went to Lowes and Sears around 2 in the afternoon to look at new ones. Lowes had customers but no more than during a weekday, however, we both commented on how few customers there were at Sears. In the past it has been near impossible to get a salesperson to help you, on Saturaday no problem. As we left we noticed that most of the checkouts had one or no customers. It's going to be a long winter, I don't see how all these retail outlets stay in business.

I parked my butt at home, played videogames, and bought a book on handgun accuracy online. I feel that is going to do me the most good in the coming times.

The traffic was light in Park Meadows mall south of Denver . I work with small business owners everyday and they are telling me traffic and sales are down 20- 35 % . Things are very difficult for many and I think everyone is concerned about their situation and most are saying it is pretty bad and there is a lot off ear in the air . I hope the new administration will help small business owners create jobs and help the economy stabilize and grow Scott J

If they truly wanted consumers to spend more, they would cut taxes on the companies that produce desirable consumer products thus allowing for lowering of product prices. They would cut taxes on the income of consumers so consumers would have more of their own money to spend. They would cut real estate taxes so that consumers would have lower monthly house payments thus having more money to spend. Getting the idea here? It's so sickeningly simple, just downsize that brick on the economy that resides in Washington D.C.. Mike Frick Yorkville. IL

Thought I file my news report. Yesterday evening I went to Barns and Noble in Madison. I happen to be a long time member of the Barns and Noble. So I went Christmas shopping. I can tell you the bookstore was hopping with constumers. Mostly students doing thier homework and such. As for me I scouted dvd bargains and books I might add. For a Thursday night it wasn't to crowded at all. Since Barnes is located at the new lifestyle mall the Rennanise Center in Madison. New stores are schelduled to open sometime next year. Now the biggest Barnes and Noble I've been in was a two story in Dallas over four years ago. I heard about the one in manhattan. Love to explore it. But in a store like Barnes and Noble I can tell u can find bargains all over the place.

"The cautious Consumer" you say, I say," Maxed out credit cards, low cash left over from essential needs." To bad when all the money was given to the large banks, Henry Paulson should have placed a limit on max credit card interest, like max 5% over prime. Of course I am assuming the bail out was to help the consumer, I am thinking I was wrong. Wish the financials were scolded like the big 3 auto's are being raked over the fire pit. Congress if you are reading this, be advised that there are 4,200 airports that airlines do not serve, should one wish to do business other than the major cities, using a corporation aircraft has been the norm for years now.