"Americans are scrambling to increase savings and curb spending. The plausible math is daunting. Since September 2007, Americans' personal wealth has dropped about $9 trillion, says economist Nigel Gault of IHS Global Insight. An estimate is that every dollar's change in wealth causes folks to change their spending by 5 cents. If so,the hit to consumer spending would be $450 billion($9 trillion times.05). Gault thinks the effect would occur over several years."
My comment: Such assumed data may be questionable but common sense would dictate the logical consequences i.e. the theory of cause and effect: A priori or A posteriori as the case may be. Nobody would impugn. However,in the meantime,we can still enjoy simple life in this mundane world with daily prayers.
"A new source of demand is needed to sustain faster growth. An obvious solution is for high saving Asian nations, led by China, to consume and spend more so that their imports increase." wrote Robert J. Samuelson.
Here is the opportunity for American products to be sold to China in the days to come for good business. Here is Sino-American Economics.
"The scary words "Depression" and "Deflation" are bandied about because an economic free fall seems possible even if it is unlikely. The mechanics of this cycle are to be seen during the course of time."
Such may be the sequel of cyclical phenomenon to be phenomenal at best as I sent my prior blog.
Francis Shieh a.k.a. Xie Shihao on Tuesday,November 25, 2008,one month until Christmas,the season of Yuletide for kids and adults to celebrate with faith,hope and love apropos of such significant occasion for humankind on earth with holy tidings of cheer and upbeat. At 10.36 a.m.
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