Old Habits Die Hard

I have heard the following phrase repeated ad nauseum since my introduction to “the game”.

"Never underestimate the American consumer"

At first the phrase suggested to me that American consumer adorned a cape and red boots and outran speeding locomotives. As my depth of understanding increased over time, I realized that underestimate suggested adherence to a blind routine that general lacked understanding of its consequences.

Never underestimate the American consumer to neglect the message of the markets. The culture of shop-til-you-drop no longer exists, but it will take time for most to realize it. In time the market will force a transition from an era of dissavings to that of savings. The lesson and transition will not be easy, but it will be done.

Personal Consumption As A % of Personal Income:


Headline: Americans boost spending heading into holidays

Americans spent at a moderate pace last month, giving the economy a boost ahead of the holidays.

The Commerce Department reported Thursday that consumers increased their spending 0.4 percent in November. The gain came after shoppers ratcheted up spending by 0.7 percent in October, the most since August 2009. It marked the fifth month in a row that spending rose.

Source: finance.yahoo.com