Consumers are spending more despite economic weakness?

[a529612]

Where do they get their money from??


Sept. 9 (Bloomberg) -- Consumer spending picked up in August even as job losses and record home foreclosures threatened the U.S. economic expansion, economists said before a government report this week.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZv2tOAmyyJg&refer=home

 

[runningman]

I don't know where the get the money, but a freaking 24 pack of Kraft cheese is now over $5. That's not a luxury item, its pretty basic. Good thing the government tells us theres no inflation though.

 

[thriftybob]

Gotta eat whatever is on sale, that's all.

The spending increase is inflation or less, IMO, being financed with charge cards because wages are below real inflation.

 

[Pro_Trader720]

Nobody can afford to pay their mortgage = more spending money. I read somewhere a couple of months back that for the first time in a while, more people are delinquent on their mortgages than are on their credit cards.

 

[empee]

Cheese, is clearly, a luxury item and you need to switch to generic brands like they do when computing inflation. Because of course, thats whats people are supposed to do. Stop disagreeing with the State. Do you support terrorism, too?

(This is sarcasm)

 

[gnome]

Quote from runningman:

"... Good thing the government tells us theres no inflation..."

You do understand that the Gummint is little but a pack of lying, thieving, self-aggrandizing, pot-licking mofo's, right?

 

[dhpar]

Quote from empee:

Cheese, is clearly, a luxury item and you need to switch to generic brands like they do when computing inflation. Because of course, thats whats people are supposed to do. Stop disagreeing with the State. Do you support terrorism, too?

(This is sarcasm)

Very funny

 

[MattF]

Quote from runningman:

I don't know where the get the money, but a freaking 24 pack of Kraft cheese is now over $5. That's not a luxury item, its pretty basic. Good thing the government tells us theres no inflation though.

Kraft's horrible for you anyway because it's prepackaged junk.

But those kiddies sure do love it!

 

[Alex_in_Oz]

When I was working in Japan I noticed that when people no longer were under the financial duress of monthly mortgage repayments and were renting instead, they spent MORE than they would had they been paying mortgages!

Renting in Japan (Tokyo) cost half approxomately what paying a typical monthly mortgage repayment would have (circa 1995-2004) so people naturally have more to spend.

The Economics PhD's haven't worked this out yet....

 

[maxpi]

There is black market income that probably is not accounted for. If Marijuana is a 35 Billion a year industry there are some folks with some long coin. If there are 100,000 people divvying up that amount it's mid 6 figure income for each and every one, or $130 a year for everybody in the US.. and that is just one drug...