Economy shrinks as consumers cut back on spending

WASHINGTON – The government says the economy shrank in the third quarter as consumers cut back on their spending by the biggest amount in 28 years. It was the strongest signal yet the country has hurtled into recession.
he broadest barometer of the nation's economic health, gross domestic product, shrank at a 0.3 percent annual rate in the July-September quarter, the Commerce Department said.

It marked the worst showing since the economy contracted at a 1.4 percent pace in the third quarter of 2001, when the nation was suffering through its last recession.

Well are we in a recession or not? When will the media and government admit it?
Even with the skewed numbers catching up the article still only says "the strongest signal yet the country has hurtled into a recession".
Havent the signals been pretty loud and clear for the last 3 months??!?
And for many the signals have been there for the last year but what do I know.
This article should be titled "No doubt about it we are in a recession and have been for a while because our government skews these numbers and if the numbers finally caught up then we are screwed people"
But what do I know...
link



[edit on 30-10-2008 by SEEWHATUDO]

oops meant to put this in global meltdown dont know why it ended up in GC
If a kindly mod wants to move it that would be great!

Target, Kohl's and Wal-Mart were all down over LY and down according to estimates. When Wal-mart is struggling, you know it's bad.

On a side note:

Wal-Mart Theft Index: How To Tell If We're In A Depression

[edit on 30/10/2008 by kosmicjack]

reply to post by kosmicjack


Yep and Linens and Things just called it quits.
Walmart has inflated their prices so much in the last year they deserve to crash and burn imo but I hate Walmart with a passion.
We have 2 blockbusters in a 10 mile radius that have closed shop and that is in a fairly upper suburban neighborhood.
Blockbusters competition, Hollywood Video, tossed in the towel a couple of months ago.
My favorite neighborhood Mexican restaurant just locked the doors over night.
Even chain restaurants like Roadhouse Grill just up and closed with no warning.
Soon, at least in Cobb County, we will have a ghost town of empty retail and restaurants.

reply to post by SEEWHATUDO


This list was from the summer. There will be so many more by the end of January.

Store closings / scale backs


[edit on 30/10/2008 by kosmicjack]

reply to post by kosmicjack


I don't go to the mall but with that list I can imagine it is going to be a pretty desolate place.
Those are mostly upper middle class retail stores, I guess the dollar store will be the place to shop.

Oh just wait till the reports come out for this month.. remember these reports are delayed.

Really you wont see certain things slow to much but trends will change, food will always be eaten but many people will change there eating habits to cheaper foods , more rice and pasta less meat and fresh vegetables.

Not to mention i cant even begin to tell you how many people started gardens this year or are ready to start one this next season.. thats going to take a bug load off the food supply system..

I think there are a couple of 'sides' to all of this economic meltdown stuff that has dramatically shifted the consumer paradigm . . . the first one being if you don't have it, don't spend it. I think that is partially because nobody will extend new credit to those seeking it unless they've got a whack of stuff backing them up which, at least in my view is the ultimate conundrum in that if you have enough stuff or savings to be able to get credit, what the hell do you need credit for, so I guess the first one basically can be summarized as ain't nobody givin' you the dough, so unless you got it to spend, you ain't buyin' nothin..

Right now, given what is going on, very few of us have it to spend.

The second one is that people are rightfully worried about what is going to happen in the upcoming months. Jobs are disappearing, investments (stocks, mutuals, retirement plans) are being eroded daily and cash is being vapourized all while the econommic elite have their nest feathered nicely with tax dollars collected from those who can no longer afford those discretionary items.

Funny thing, the only ones deluding themselves over the past month or so with respect to whether or not we're in a recession are those who put us in this precarious position to begin with . . . its as though they don't want to admit the mess they've created and somehow by not calling a steaming pile of manure by it's real name, we'll somehow believe it doesn't stink.

Go figure.

reply to post by SEEWHATUDO


More likely the $5 dollar store. Inflation, you know...

reply to post by kosmicjack


yeah i was going to say that but I still have my fingers crossed that maybe just maybe we will squeak by. Even blew on a dandelion the other day
Still looking for that silver lining...

Originally posted by GoalPoster
Funny thing, the only ones deluding themselves over the past month or so with respect to whether or not we're in a recession are those who put us in this precarious position to begin with . . .Go figure.

To your point: Although sales are down over-all at high-end stores, the quality of sales is up. In other words - fewer transactions (people) but better quality (amount) of individual transactions.

So the people who have money are still spending it as much as ever. No big surprise there.

This makes no sense...

Stocks open sharply higher after GDP report

NEW YORK – Wall Street was feeling more upbeat Thursday after a government report showed the economy contracted in the third quarter by less than expected and after the Federal Reserve's second interest rate cut in a month. The major stock indexes jumped more than 2.5 percent, including the Dow Jones industrials, which rose 225 points.

news.yahoo.com...;_ylt=ApuVZx7xDK1eOyNCwuNG7pys0NUE

oops - double post

[edit on 30/10/2008 by kosmicjack]

reply to post by SEEWHATUDO


I think it's because they thought it would be significantly worse.


Additional cuts:

American Express to cut 4000 jobs

U.S. Postal Service to cut 40,000 jobs Can that possibly be true?

[edit on 30/10/2008 by kosmicjack]