Wednesday, June 18, 2008

Cure for high prices?

The age old adage is...the cure for high prices is high prices. Very true, but I'd add to that a good dose of consumer debt as well. Consumers are changing their ways in rapid fashion. From downsizing cars, downsizing houses, drinking tap water, shopping at discounters, ditching boats, etc...the list is increasing in the changes consumers are making.

Feeling thrifty, the thirsty reach for tap water

Low sales force Ford to idle SUV plant for 9 weeks

Sea Ray plans to furlough 900

And the list goes on and on. Those who still don't think we are in a recession and that it will be a doozy, will soon realize the truth. Consumer led recessions are not pretty. They take awhile to surface and they remain intact until major fundamental changes take place. The stubborness of the "official government statistics" to break down are causing misreads across the board. This will blindside anyone who doesn't do their own research.

1 comment:

Anonymous said...

check out this from the NYTimes
http://www.nytimes.com/2008/06/25/business/25exurbs.html?em&ex=1214539200&en=8ab13a06c187ab57&ei=5070