We're all familiar with NIMBY (not in my back yard), well I've got a new (less catchy) acronym, SNTS:JNM or "somebody needs to spend, just not me." The linked WSJ article has a frightening graph and accompanying story about the change in personal consumption from quarter to quarter. While it is true that we can't keep spending $117 for every $100 we earn, the stunning cutback by consumers is going to bury the economy further into a hole from which we must eventually emerge.
The trouble is, who can afford to spend money? Folks who would normally throw caution to the wind and buy things have been locked out of the credit market and those who carefully manage their finances aren't about to make any extra purchases. This vicious circle of cutbacks will continue to impact the auto industry until something or someone steps in to break it.
source: Hard-Hit Families Finally Start Saving, Aggravating Nation's Economic Woes - WSJ.com
Tuesday, January 06, 2009
SNTS:JNM
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I got to admit I sometimes think that it is all my fault for economic tough times. Back in 2000/2001 I left a good job to try something new and the Dot Com Bubble burst. Leading to a failing economy. Last year I left the job I got in 2002 to take some time off to find myself. Web 2.0 went bust, mortgage crisis, economic collapse...it's all my fault.
Being without steady income I stopped spending on fun things. I just buy food and the basics. No $200 jeans, no new games for the Wii and no new car. It's all my fault!
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