Mrcauser’s Weblog

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No we will call this a Depression….

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Short lived until the boomers retire over the next 10 years and cash out their stocks. Currently it’s the law. By the age of 70 401 k’s have to be liquidated. Doesn’t matter if they change the law, we are broke and don’t have enough new taxpayers. So, we need to import Mexicans to pay for our Social Security. Better bone up on your Spanish, amigo.

Up here in Idaho we have guns to eat with. What have you got. Obanomics? Worldwide

Oct. 31 (Bloomberg) — U.S. consumer spending tumbled in September and a purchasing managers’ survey showed the biggest deterioration since 1968, foreshadowing a deepening economic slump.

“Consumers have thrown in the towel,” said Nariman Behravesh, chief economist at IHS Global Insight in Lexington, Massachusetts, who correctly forecast the drop in purchases. “They have no choice but to cut back on spending in a very big way. This is going to be a fairly deep, long recession.”

The 0.3 percent drop in purchases matched the biggest slide in four years and followed no change in August and July, the Commerce Department said today in Washington. The Institute for Supply Management-Chicago said its business index fell to 37.8 this month, below all 58 estimates in a Bloomberg News survey.

Job losses, increases in food and fuel costs and falling property values brought an end to the longest expansion in spending on record and made the economy the most important issue in next week’s presidential election. The collapse in lending and sentiment this month indicate Americans will keep retrenching.

Today’s Commerce Department report also showed that the Federal Reserve’s preferred measure of inflation cooled last month. Receding price pressures mean the Fed has “more room to maneuver” with interest rates, Behravesh said. San Francisco Fed President Janet Yellen said yesterday policy makers may cut the key rate close to zero percent should the economy remain weak.

Employment Costs

Labor Department figures showed separately that employment costs rose 0.7 percent in July to September, the same pace as the previous two quarters. That’s a sign that rising unemployment is stifling gains in wages and benefits.

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Written by mrcauser

October 31, 2008 at 7:35 pm

Posted in Uncategorized

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