Resilient Consumers?

The headline in today’s paper reads, “Consumers return to shopping ways”.  Keep in mind that this article is right on the heels, and in fact right on the same page, as article after article lamenting the tightening of the credit market, the poor housing market, and how our foolishness in regard to borrowing more than we can repay and purchasing more than we can afford.  So, basically, there is good news.  Consumers are still consuming.  Whew!  That was a close one.  I thought we were in real trouble.  But never fear—the American consumer will come through in a pinch. 

 

I guess it’s the patriotic thing to do.  President Bush goaded us all to go shopping to show the terrorists that they cannot stop our way of life.  Interesting, isn’t it?  Our way of life is shopping.  Bush was right about this one.  He understands, in this case, the nation he leads.  We are a nation defined by our consumption.  That consumption is apparently insatiable.  80% of US households have at least one credit card (including ours).  10% of those carry balances in excess of $10,000.  In fact, according to cardweb.com, the average debt carried is over $8000 per household.  Now, that number is grossly skewed by the relatively few who are in huge huge debt, but 21% of cardholding households carry debt of over $2000 according to http://moneycentral.msn.com/content/Banking/creditcardsmarts/P74808.asp.  We are people in debt and getting deeper.  But hey, if terrorists can’t slow us down, what’s a little housing slow down going to do?

 

Apparently nothing.  That’s the message of today’s article, “Consumers went shopping for everything from clothes to furniture last month, helping to calm fears that a key segment of the economy might be faltering.”  Retail sales rose 0.3% in July after a 0.7% decrease in June.  Analysts were worried about what July would bring and breathed a sigh of relief to see that the American consumer can be counted on, “Consumers are holding tough,’ according to Mark Zandi, chief economist at Economy.com.  ‘They are surprisingly resilient in the face of near-record high gasoline prices and the unraveling housing market.”

 

So congratulations, you bold, courageous, resilient consumer!  You have come through again.  Nothing can slow you down—even if you can’t afford it.  (cue the “real American heroes” music from that beer radio commercial).  Our greed and need to consume knows no bounds.  Thank goodness and thank visa and mastercard.  Where would we be without them? 

 

um, maybe solvent, and maybe at a little more peace with ourselves and the world.