Consumes Are Fading In the U.S. by Angelo Airaghi [Guest Analyst] 11/17/2008

Time is needed to restore confidence among both consumers and businesses, as the Treasury and the Fed are expecting banks the use some of the money of the rescue package to promote credit to the middleclass. Macroeconomics events will be attentively watched, while the U.S. dollar is again testing key resistance lines.

With the households wealth is deteriorating and employment is falling, consumes are declining rapidly in the United States. In October, retail sales slid 2.8% (-2.1% expected) month-on-month versus September fall of 1.3%. In effect, the labor market remains weak and more laid-off are expected in the future. Jobless claims rose to 516,000 units in the week ending November 8th from 484,000 the previous week. Time is needed to restore confidence among both consumers and businesses, while banks are becoming very demanding on credit requirements. In reality, the Treasury and the Fed are expecting banks the use some of the money of the rescue package to promote credit to the middleclass. Nonetheless, consumers are slowly adapting to the new saving¡¦s era by cutting back loan demand and by not buying unnecessary items. The main focus is now on macroeconomic themes and fiscal measures, even though more rate cuts are expected around the globe and maybe in the U.S.


Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.

This article contains the following sections:

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