Assurances from Washington about the economy are falling on deaf ears. When you hear, "Well, the figures aren't as bad as we expected," you know the economy is in the tank.
Consumers are smarter than politicians: they are cutting their spending, not sinking us deeper in debt. The chart above says it all. The gray lines indicate recessions, and the consequent drops in consumer spending; the current drop is by far the worst in almost 60 years.
I wonder what would have happened if, instead of the "stimulus", we had enjoyed a big tax cut. That would have put me in a better spending mood. How about you?
