How long can US consumers keeps spending with a full year behind them plagued with housing slowdown?
Ron Abelson
Oct. 2, 2006

70% of the economy is dependant on consumer spending and that has kept up inspite of housing slump.How long can US consumers keeps spending with a full year behind them plagued with housing slowdown?

According to economists and think tanks that specialize in consumer sentiment studies, falling gas price is a big factor. The other factor is the lower long term interests and highe stock prices in US.

The stock market is going in a strong bull trend since 2003. The pension funds are up. The gas prices in the pump stations are down somewhat. What is more significant is that the natural gas price is historically low. That gives extra money in the hand of consumers as winter approaches.

Another factor is the long bond teild rate. It has fallen from 5.2 to 4.6% in two months. Many now will convert their rising one year adjustable mortgage to a fixed mortgage and save a bundle. All thse are working against the falling home prices. It is tug of war between these positives and large draw down on vanishing home valuation levels.

How long can US consumers keeps spending with a full year behind them plagued with housing slowdown?
Ron Abelson
70% of the economy is dependant on consumer spending and that has kept up inspite of housing slump.
READ MORE>>

US Stock market showing huge divergence - a sure sign of a coming multi-year bear market
Susan Albright
The Investors Intelligence is showing unusual bullishness while the divergence between broad market and the selected few in the Dow is widest ever.
READ MORE>>

US economy can expand less than 2% in the second half of the year and there is a 60% chance of recession in early 2007
Sam Adelton
If that happens this can be best time buy bonds and euro dollar futures.
READ MORE>>

Amaranth hires Fortress Investment to complete liquidation but investors how many of the 8000 hedge funds are walking in thin ice?
John Mikahli
There are more than 8000 hedge funds and some of them are as risky as the whims of their managers.
READ MORE>>

Graduating college and high school job sekers in US lacks basic and applied skills : US business leaders
Kathy Mugabey
According to s a survey by the The Conference Board and the Society for Human Resource Management the new entrants to the US workforce are ill prepared to handle the contemporary complex intellectual and technically sophisticated work environment.
READ MORE>>

'Open Season' earns $23 million with the top spot at the weekend box office - a succes for Sony's first release from the company's digital animation unit
Sandra Lokuta
Open Season is directed by Jill Culton, Roger Allers, and Tony Stacchi...
READ MORE>>

Pension funds combine resources to buy British water utility AWG for $4.12 billion - can they make it prosper?
Arthur Bansley
The investment group is confident of their new acquisition. They do not plan to arbitrage but try and make the utility prosper in the long run.
READ MORE>>

MORE ARTICLES >>