posted on Aug, 8 2008 @ 11:18 AM
Anyone notice that the price of oil this morning was down to $115 a barrel and the dollar had grown in strength? Typically when the dollar rises, oil
falls, but I believe oil is also dropping because we as Americans have changed our spending habits, as echoed here:
Merrill Lynch North American economist David Rosenberg said U.S. consumers are starting to rein in their spending. "We are detecting early signs
that a new pattern of spending behavior is taking hold in the aftermath of the housing, credit and oil shocks; it is called frugality. The trend
towards essentials and away from discretionary," Rosenberg wrote in a note to clients. Rosenberg noted that air travel fell by 20% in the second
quarter, while mass transit jumped 30.7% and spending on cars and SUVs fell 18.5%. Bicycle sales rose 4.4%.
There are other signs of economic growth happening also:
Consumer credit rose by $14.3 billion in June, indicating that there is definately some spending going on.
"This is definitely showing some level of spending activity on the part of the consumer following the fiscal stimulus bounce," Maxwell Clarke,
chief U.S. economist at IDEAGlobal, told Bloomberg News. "The impact of the stimulus has put our problems off for tomorrow."
Hmmm. Maybe Bush knew what he was doing with the whole stimulus package after all, huh, despite all the poo-pooing from Democrats in Congress!
The Democrats would have us believe we're knee deep in a recession right now and only they can turn the nation's head-on collision with doom around.
I beg to differ. In fact, one could argue that these hard times we've been through the last couple of years have made us an economically smarter,
leaner nation. We've cut out a lot of unneeded spending and hopefully have learned a lot of valuable lessons.
Let's just hope the trend toward economic growth continues.