U.S Consumption Outlook for 2009-2010
By Daniel at 24 November, 2008, 4:43 pm
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As Americans come to understand this paradigm shift, and the need to be globally competitive, they will have to aggressively address to the two areas where they can cut costs alot -housing and autos. People will begin to “double up” on both, and the need for autos and houses will contract. With NO WORK on SS and Medicare, which are a lot more important than the big3, the economy has no bottom at the present time. With 79 million people with no idea of how they will live after 65, you can expect them to MASSIVELY decrease their expenditures. About 15% of them cam make it through retirement unless these things are fixed. This is very different than the 48 year old “retiree” from the Big3.
The age of ” Conspicuous Consumption ” for most Americans is over and done! The cars and boats all over the yard is over! The three thousand plus square foot homes for two is gone and done! Toast !
Americans in general have been living way over their respective heads for decades now - but that is coming to a screeching halt don’t you know!
Life will be more like it was in the early 1950s with its lower pay, smaller homes and less cars and trucks all over the place. With many retirees working til they can’t anymore into their 70s … moving in with the kids even.
Its not like you are going to have a choice either my friends. If you have lost the better part of whatever savings you had and you/re up to your eyeballs in debt ( like most Americans ).
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