I’ll say it again – If consumers can’t consume our Consumption Economy will fail
Consumption Economy. That has been America’s main economic engine for many years. Consumers and businesses alike are corpses rotting on the battlefield of life and no one is dragging the wounded off the beach. When you see major companies like Microsoft take big hits and start layoffs you know the worst worse case scenario is upon all of us.
For richer or poorer, sickness and health, the American consumer’s marriage to business is ending in divorce and a nasty one at that. How many consumers are knocked out of the economy? Tens of millions. Poor credit, bankruptcy, layoffs.. more and more just eliminated them from the buying marketplace now and for years to come. Yes credit addiction by our government and consumers has gotten us here – but wherever you go…there you are. Unfortunately here we are and without some consumer changes our economy and all sectors will perpetually falter. Just think of how many consumers are locked behind the gates on the Titanic because they are the little guy or poor people. Do we just let them die while executives across the land get the life boats?
Let me use an example. Take a look at retail that I have been harping on for a year. Do you notice all the liquidation sales, super markdowns and blow outs of products. Well they have to. They can’t afford the inventory even if it means little or no margin of the products. Where do you think that is headed? Right down the proverbial toilet. Don’t dare look at airlines, tourism, restaurants and all the many services consumers enjoy. Where do you think those sectors are heading? Right down the proverbial toilet too along with the rest of the economy; cars, boats, RVs, big screen televisions, on-line buying and even the necessities like food, clothes, shelter are shaken to the core. Maslow would be rolling over in the grave.
AMERICA DOES’T HAVE TO SPEND A DIME TO HELP CONSUMERS
So here we go again! What can be done? Big government bailing out big business – it will happen anyway. An $800 tax cut or stimulus check – not this time. Regardless of what we do and how we do it – if we can’t attract and enable consumers to get back to buying every business in America and overseas will come to a day of reckoning and our government is right behind them.
Bankruptcies and foreclosures and 30,60,90,120 days lates should be weighted out of credit scores our minimized based upon the worst economic crisis in America’s history. Either expunge them or get the credit agencies to change how badly those things affect credit in the future. WHY? Because families and people even with great credit can’t get loans and their credit cards and lines are being reduced. How on earth will those with poor credit ever recover and get back to business. Several years of extended pain and mark my words this will crater and bring American businesses to their knees.
Consumption Economy. That has been America’s main economic engine for many years. Consumers and businesses alike are corpses rotting on the battlefield of life and no one is dragging the wounded off the beach. When you see major companies like Microsoft take big hits and start layoffs you know the worst worse case scenario is upon all of us.
For richer or poorer, sickness and health, the American consumer’s marriage to business is ending in divorce and a nasty one at that. How many consumers are knocked out of the economy? Tens of millions. Poor credit, bankruptcy, layoffs.. more and more just eliminated them from the buying marketplace now and for years to come. Yes credit addiction by our government and consumers has gotten us here – but wherever you go…there you are. Unfortunately here we are and without some consumer changes our economy and all sectors will perpetually falter. Just think of how many consumers are locked behind the gates on the Titanic because they are the little guy or poor people. Do we just let them die while executives across the land get the life boats?
Let me use an example. Take a look at retail that I have been harping on for a year. Do you notice all the liquidation sales, super markdowns and blow outs of products. Well they have to. They can’t afford the inventory even if it means little or no margin of the products. Where do you think that is headed? Right down the proverbial toilet. Don’t dare look at airlines, tourism, restaurants and all the many services consumers enjoy. Where do you think those sectors are heading? Right down the proverbial toilet too along with the rest of the economy; cars, boats, RVs, big screen televisions, on-line buying and even the necessities like food, clothes, shelter are shaken to the core. Maslow would be rolling over in the grave.
AMERICA DOES’T HAVE TO SPEND A DIME TO HELP CONSUMERS
So here we go again! What can be done? Big government bailing out big business – it will happen anyway. An $800 tax cut or stimulus check – not this time. Regardless of what we do and how we do it – if we can’t attract and enable consumers to get back to buying every business in America and overseas will come to a day of reckoning and our government is right behind them.
Bankruptcies and foreclosures and 30,60,90,120 days lates should be weighted out of credit scores our minimized based upon the worst economic crisis in America’s history. Either expunge them or get the credit agencies to change how badly those things affect credit in the future. WHY? Because families and people even with great credit can’t get loans and their credit cards and lines are being reduced. How on earth will those with poor credit ever recover and get back to business. Several years of extended pain and mark my words this will crater and bring American businesses to their knees.
Allow a onetime bulk refinancing of all loans and credit so people can stay afloat – and I mean just keeping their heads above water. And like the Titanic example above most of them will freeze to death and surely drown while the rich stay in the life boats and smack the little guys on the heads with oars.
Economy bonds. Instead of paltry checks and tax cuts why doesn’t the government give us economy bonds for some of our taxes – like METHADONE for the credit addicted to start creating a savings nation. That is why Japan was able to stop a banking meltdown a decade ago – because they were a savings nation. Heck the government still gets to use all the money.
If you haven’t read the 10% solution – here it is again – a law for 5-7 years requiring all institutions in the US – to invest 10% of their portfolios into a deficit fund to absorb the US debt and buy back currency. Forget about executives buying back stock in their companies – we need our entire nation to buy back US debt. Don’t you think the stock market will sky rocket? Wouldn’t those investment be tremendously valuable as the rest of the portfolio goes through the roof. A HUGE WIN – WIN!
I may be beating a dead horse – but even if I wind up with a bone dry jaw – I will take that thing and shove it into the watering hole when I get there. If you can’t get the horse to the water to drink in the first place – when we get there we will be sticking bones and carcasses of consumers in there and hope that somehow they will be revived.
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