Because gas is 25 cents less? Because you think you can get an easy loan? Your credit card limit just went up? Your house value is going up? All sarcastic but reasonable questions as to why some feel people will all of a sudden begin to spend again.
Personally, I spend less as my cost of living is too high, today the fed did not change my mind to save what I can. I wouldn't hold my breath the economy is any better off than it was yesterday. Good luck.
I am with you. I am cutting down my spending long before the tax refund checks ever issued and furthermore I deposited my refund checks right back in my bank account and continuous trying to spend less every chance I can. The home foreclosure report two months ago to almost a million is not going to suddenly goes away or decrease by half. With Benanke's slow to act and not taking the Sub Prime rumor seriously last April and only realized the situation and took interest cut in August has taken the U.S. economy a toll. Not to mention that Greenspan is the major cause of all these Sub Prime mass that he lowered the interest rate long into the year of 2003 that encouraged everyone kept on borrowing cheap based on easy credit to end up over built of the real estates. It is the Fed's job to have the knowledge of the amount of borrowing credit situation out there and have understanding of supplies and demand in the market so they know when to act to raise rate without overheating the market before it's too late. Otherwise any analyst in the street can easily do his job or even myself as a businessman for over 22 years of business experience. Even I have at least that much of the knowledge and instinct when seeing the price of home went skyrocketed and people were flipping houses when owning more than 2 to 3 homes at a time. I remember the author of the 'Rich dad, poor dad' was saying the housing market was at its peak of the bubble long before last April, but clearly not everyone takes him very seriuosly back then. He taught about how to get ahead when trying to be in the real estate market in his book, but he has never taught you to be the stupid expensive bag holders. I am sure many intelligent investors on this board probably think the same thing I do about if this is the best that our Fed can do, then do we really need a Fed! Honestly I do not have trust nor confidence in the U.S. system anymore. They try to rob peter, pay Paul. We ended up losing our big 401k, our retirement and our investment so the Fed can ask the Uncle Sam to print more cash to cover the mess that causes by all the banks. Why shall we be end up paying for the mistakes to those who gambled on the bad credit and gave the easy loans? It is like punishing the good kids and rewarding the bad kids. To sum up, you can only trust yourself after all these. Cash is King. Ignorance and Naiveness will cause you big bulk. Traps every where out there including by your own government and your politicians.
walmart reminds me of an orderly salvation army store - gives me the creeps to be in there, and i understand that the one i went into in pleasanton, ca is one of the best there is. i have seen department stores in mexico that walmart resembles - sorry, it's target for me because it is far more civilized. call me a snob but i'd rather pay a few cents more and not feel so third world.
Reports that the economy was better than yesterday are coming out today.
",said Tuesday its reading of the service sector was 49.5 in July, up from 48.2 in June." (it was expected at 49.0)
I was spending less because I was nervous about how expensive things would get, but now I have a ton of extra cash. I don't think we're out of the woods yet, but at least I'm getting used to the forrest.
...So, yes, I may start spending more. I had put off my new tv. I'll go look this weekend.