The Economy Today
Two news stories today make it clear how the economy is fairing today. First, the economy is in the doldrums. Consumers aren’t spending, businesses are losing money, the world is coming to an end:
NEW YORK (Reuters) – Discount retailer Dollar General Corp. on Wednesday posted an unexpected profit fall with customers hurt by high oil prices and unemployment, and expressed caution for the key holiday season.
Discount retailers, including No. 1 retailer Wal-Mart Stores Inc. have warned that lower-income household budgets are tight as the key holiday season starts with high oil prices driving up heating bills and gasoline costs.
Also, the economy is booming. Consumer spending is up, business is great, we’re all going to be rich:
WASHINGTON (Reuters) – U.S. consumer spending rose a sharper-than-expected 0.7 percent in October, showing the economy off to a solid fourth-quarter start despite a step-up in inflation, a government report showed on Wednesday.
“Looking pretty solid,” said Kurt Karl, head of economic research at Swiss Re in New York. “I would say there is a very good holiday season coming up.”
The stock market was down yesterday on half of the news and up today on the rest of the news. If I can shed any more light on the economy, drop a comment and I’ll be happy to explain it.
Good Luck with that!!:roll: I think you would have to be a politician to be able to spin that one together.:wink:
onelamb
December 1, 2004
Well, if you look at the Black Friday sales, it was the high-end and discount stores which were pleased and the mid-range stores which were disappointed. I don’t think the two reports contradict each other, I think they simply illustrate that the gap bewteen the haves and have-nots is widening, and the middle class is hurting.
Jo
December 1, 2004
Is it too late to make a John Kerry joke about the market’s indecision?
A.M.M.
December 1, 2004
I agree with Jo about the gap widening between the haves and the have-nots. Robert Kiyasoki has a great explanation why in Who Took My Money? (also the author of Rich Dad Poor Dad).
Courtney
December 1, 2004
Hey, all you have nots – try starting a business, then you can become a real have-not. Try “The Millionaire Next Door” (forgot the author). But one day, maybe you can become a have. Welcome to the market system all……
Sean
December 1, 2004
Why do you think we’re all driving Honda Accords? That’s what I got out of the book. Drive Accord = Millionaire. So far, it’s not working
Courtney
December 1, 2004
Onelamb – No way would I want to be a politician. Too much compromising on values for me.
Jo – You may be right. My brother has an additional take; Check-21 is here and people can’t buy things at the end of the month and expect their 1st of the month paycheck will cover it. Now they have to wait until the beginning of next month.
AMM – I thought about Kerry, too, but decided he’s old news.
Courtney – you’re supposed to by the Accord and then put the Cadillac money into savings.
Sean – You’re blessed in so many ways. You’re a “have.”
Michael
December 1, 2004
Ohhh, put the $$ into savings. Don’t remember that part
Courtney
December 2, 2004
Yeah, if you put the $$ into a boat, a girlfriend, or donuts, driving the Accord won’t help much.
Michael
December 2, 2004