Most people say they are cutting back on restaurants, travel, and luxuries, the paper reports. Instead, they’re staying at home and renting movies for entertainment.
Here in London, we went out to a restaurant last night and found it almost empty. “Where are the customers?” we asked the waiter, thinking we were too early. “Oh… it’s this financial mess… nobody wants to come out to a restaurant any more.”
eBay says the average family has about $3,200 worth of stuff it doesn’t need. People are getting it out… cleaning it up… and shipping it off. In return, they get what they need – cash.
Readers with a weakness for economics will see in both of these examples a dismal herald. They announce a collapse of consumer demand. Not only are people spending less… but even when they do shop, they’re buying more second hand stuff… stuff that comes from closets and attics – not from China.
So what? Well… if they’re not buying new stuff there’s no need to make new stuff… or sell new stuff…
Full story:
http://www.dailyreckoning.com.au/so-many-things-to-correct-so-little-time/2008/11/19/
