The signs are everywhere that our economy continues to putter along like a snail across a sidewalk. Shopping mall parking lots, once filled with activity are almost empty. Stores seem to be closing at alarming rates and full-time jobs are becoming more scarce by the day.
Economists are finding a majority of Americans have opted for the wait and see attitude, when it comes to spending their hard earned cash. Most households in America are playing it safe and holding on to their money, just in case.
The fear of possibly losing their job or some unforeseen emergency whittling away at their savings is real to a lot of people. The frugal trend of saving money for a rainy day has grown like wildfire.
The problem, if consumers aren’t spending our economy will continue to perform poorly and the recession will drag on for years, as most economist predict. The government cannot continue to poor money into the economy at record levels, it is unsustainable and for the most part has not worked.
Basically, consumers are not confident in our governments ability to turn things around. People are smart enough to know that when you have high unemployment, an ailing housing market and no signs of future job growth, we have a major problem.
Home values have dropped 35% in the past 28 months, resulting in many homeowners losing all of the equity they have built up over the years. Equity that could have been used to pay-off debts or remodel their homes,
money that could have help fuel the economy.
Politicians in Washington need to call on all industry leaders and come up with a plan to solve this crisis. Trying to spend our way out of this mess has not worked. We need new ideas and some innovative thinking to restore confidence back to the American consumer.
Author: Cityclix.net Staff Writer
Just 2 years ago, consumers eagerly awaited the Xbox, and the latest big screen television to hit the market. Car purchases were booming and everything was good. Today, it’s a whole different story.
Fact: Banks will lose 60 percent on a foreclosed property. With almost a trillion dollars to lose, most banks will work with you on reducing your mortgage to minimize losses.
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