Dim retail sales hurt US economy as Fed sees weakness

[ChromeFoundry]

Source: The Economic Times of India

15 Jul 2010, 0204 hrs IST,AGENCIES

WASHINGTON: A second straight month of declining retail spending will likely keep unemployment high and help weaken the recovery.

Not everyone is suffering, though. Shoppers with stable jobs and steady pay can find lots of bargains. The economy is bleaker for anyone seeking a job or at risk of losing one. Still, Americans as a group are spending less, and that threatens the pace of the recovery.

Federal Reserve officials took note of the weakness when they met in June, the minutes of that meeting show. The Fed signaled that it stood ready to take new steps to sustain the recovery if the economy worsened.

In the meantime, Americans will likely be spending only warily.

"Clearly, the consumer is being more cautious now," said David Wyss, chief economist at Standard & Poor's in New York.




Read more: http://economictimes.indiatimes.com/news/international-business/Dim-retail-sales-hurt-US-economy-as-Fed-sees-weakness/articleshow/6169449.cms

[OhioChick]

1. Time to shop, shop, shop!

:sarcasm:

[TomClash]

2. So then how about buying back some consumer debt, Mr. Fed? nt

[hobbit709]

3. I cut back on a lot of discretionary spending

I used to try to keep the parts for at least two complete computers on hand so I could repair or upgrade a customer. Now I just have the parts for one on hand.

When I go to the grocery, I just buy the basics and whatever is on sale and plan my meals around that. Luckily I have a well stocked freezer. I eat out about once a week now instead of two or three times-mainly because I either get tired of my own cooking or it's too hot to heat up the kitchen.

The only thing that gets charged on my credit card is the $34/mo for my VOIP. I expect to have the house paid off in Jan. and all other debts by next spring.

[Hydra]

6. That's the only way to survive, I think

Cut out anything you can from your budget, and don't even THINK about taking up new debts(and pay off what you have).

The way things are moving, everyone who wants to survive will have to live on less than bare minimum.

[Newest Reality]

4. Those dumbfucks with their endless streams

of propagandist dribble.

While there are people who are more cautious about attending the endless spending-spree party, there is a more important and obvious problem that would make the quote accurate if it said:

"Clearly, the consumer is flat-broke and sliding, kicking and screaming, down an oily slope into oblivion thanks to flat wages, job loss, foreclosures, health-related bankruptcies, etc."

Screw that term, BTW. I am not a consumer by nature. I am a human being who is free within. Call me a man, a citizen, or what have you, but I do not exist merely to consume. I have needs that need to be met and then, there is the rest of living and all it entails.

[Hydra]

7. +1000

And welcome to DU this year.

[xchrom]

5. recommend

[defendandprotect]

8. Congress has to run our economy . . . NOT THE FED... it's a political question . . .

and we don't elect the FED --

And, Obama leaving Bernake at the FED is also disasterous --

[Warpy]

9. Well, DUH, and they want austerity on top of this?

They'll kill the economy stone dead if they manage to join Europe in pursuing the stupidest policies out there.