Saturday, January 9, 2010

Consumer borrowing down

Consumer borrowing dropped by a record amount in November, the 10th straight month that Americans relied less on credit cards and banks hoarded their cash.

The dramatic decline in borrowing — $17.5 billion in November versus $5 billion that analysts had projected — underscores the battered state of household finances and the uncertain employment picture.

America no longer manufactures things. Instead, we sell things to each other.

Therefore, the economy won't pick up until American consumers again start borrowing, buying and spending.

American consumers won't start borrowing, buying and spending until they get back their confidence in the economic future.

American consumers won't get back their confidence in the economic future as long as they feel they have a popular, well meaning but fairly incompetent celebrity in the White House.

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