Friday, December 2, 2011

Should Consumer Demand *Be* Strong?

Retailers depend on Black Friday, not to mention sales during the rest of Nov and December, to make their profit for the year.

So the news was very good for them on Black Friday - there was spending in record numbers, better than it's been for several years.

But as I read that news I found myself asking...where are the people getting the money they are spending?

Could it be that they are putting all their purchases on credit cards...which they will soon find out they have no ability to pay off...or if they do pay them off, it will take them several years and cost them twice as much money as they spent originally in interest fees?

And if people default on their credit card payments, what happens? They get the good they bought for free, and the credit card companies are out of luck. Even if they turn the outstanding bills over to collection agencies - they only get pennies on the dollar for each outstanding bill... any money collected goes to the collection agencies.




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My Schedule of Regular Posts:
*Monday through Friday morning - schedules of President, VP and Secretary of State and her diplomats
*Monday through Friday afternoon - List of topics Limbaugh discussed on his program that day
*Monday through Friday throughout the day - My posts on anything that I feel like talking about. At least one or two a day, sometimes more.
*Saturday through Sunday morning - An addition to my booklist of political books - covering Democrats, Republicans and other interested parties
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