It would appear that an increased savings rate, and the debatable longevity of the “new frugality” meme, are more sticky, time wise, with American consumers than many business leaders and economists had hoped.
Not surprisingly, negatively toned headlines like one in seven Americans living in poverty and much of the financial mainstream media constantly discussing probabilities of a double dip recession aren’t helping consumers feel confident enough to spend during the Great Unwind.
Or, just maybe, 30 years of borrow and spend have taken their toll on the American psyche and we’re simply going to revert to a new meme of pragmatic consumption and conscious consumerism, rather than buying any little piece of junk with borrowed money.
Image Source & Credit
Dr. Gary Schilling
Posted at Barry Rithotlz’s Big Picture Blog
Chances of a Double Dip