[cat]

An article out of the NY Times is suggesting that consumer spending is on the decline, for all income levels. This quote brings me back to Kunstlers predictions:

$this->bbcode_second_pass_quote('', 'T')he big exception is gasoline. American Express and the Consumer Federation of America say that consumers are buying just as many gallons as ever, but paying more for them, and that has forced cutbacks in other purchases. Gasoline prices usually drop after the summer driving season, but this year they shot up, from $2.85 a gallon on average in September to $3.07 in December and $3.15 in the first week of January.

A similar trend is evident in the cost of natural gas, electricity and home heating oil. “We built these big houses in the suburbs, which need a lot of energy to stay warm and a car to go shopping,” said Stephen Brobeck, executive director of the Consumer Federation. “And we can’t change that quickly.”

[dinopello]

Also from the article

$this->bbcode_second_pass_quote('', 'T')here are some bright spots now in consumer spending. Sales of sports gear and electronic gadgets — particularly G.P.S. navigation devices and flat-panel television sets — have risen over the last three months. To Stephen Baker, vice president for industry analysis at the research firm NPD Group, that suggests there is still enough purchasing power for people to buy what they really want.

“We probably would not have seen strong sales for electronics products that people really want if the overriding issue was economic,” Mr. Baker said.

[cat]

$this->bbcode_second_pass_quote('', '�')��We probably would not have seen strong sales for electronics products that people really want if the overriding issue was economic,” Mr. Baker said.

[Gerben]

It's not economic, it's a fashion statement. Expensive heating oil and gasoline is in. New clothes is out. ::roll:

[shortonoil]

$this->bbcode_second_pass_quote('', '�')��We probably would not have seen strong sales for electronics products that people really want if the overriding issue was economic,” Mr. Baker said.

[DrBang]

$this->bbcode_second_pass_quote('', 'T')hey act like there should be no reason that finances are short. That people are not being forced to choose between eating, heating their home, or taking the baby to the doctor. They should all be herded together and shipped to a Brazilian sugar cane plantation where they could cut cane 12 hrs a day, and be treated for Gargantuan Insensitive Stupidity Syndrome in their spare time!

[drgoodword]

And now credit card debt--the last reserve of consumer credit--has now been maxed out and is beginning to produce an avalanche of defaults.

(Mish's Economics blog has some good commentary and links on this topic today.)

[cat]

$this->bbcode_second_pass_quote('', 'A')nd now credit card debt--the last reserve of consumer credit--has now been maxed out and is beginning to produce an avalanche of defaults