Moneyweek: New mood of Austerity beckons for US consumers

WTF?_2

http://www.moneyweek.com/file/46576/what-consumer-downsizing-means-for-stocks.html

The “next big thing” our friends at The Daily Reckoning recently predicted, “will be downsizing, cutting back, making do. Barely on the radar screen now, thrift is coming into focus more clearly day by day. So far, people are a bit embarrassed about it…a bit ashamed that they have had to cut back. But soon, it will be popular…fashionable…and, finally, almost obligatory.”

Not before time and we'll hopefully see it in the UK too. We've had years of conspicuous over-consumption on borrowed money. Frankly, the notion of 'Shopping as a hobby' sticks in my throat.

Too bad for retailers and those working in that sector but the whole thing has become so bloated and overblown that a clear-out is necessary.

Pobby

Well I am part of the chain.Manufacturers, wholesaler, retail.It`s grim!!!!I cannot remember it being this bad in decades.Business for me is about 70% down and that seems to be the case with others I talk to.Last week the biggest retailer in my industry ``fell over``.It would appear to be with huge debts which may well be the death toll for smaller suppliers involved.It`s a rocky road ahead children!

m00m00

and yet there are still people who want to go back to the reckless lending to idiots, pushing hpi ever further upwards, and the debt bubble even bigger

the mind boggles sometimes

Pobby

m00m00 wrote: »

and yet there are still people who want to go back to the reckless lending to idiots, pushing hpi ever further upwards, and the debt bubble even bigger

the mind boggles sometimes

Ah Gordies ``Economic miracle``, oh hang was that Thatcher????

fc123

!!!!!!? wrote: »

http://www.moneyweek.com/file/46576/what-consumer-downsizing-means-for-stocks.html

The “next big thing” our friends at The Daily Reckoning recently predicted, “will be downsizing, cutting back, making do. Barely on the radar screen now, thrift is coming into focus more clearly day by day. So far, people are a bit embarrassed about it…a bit ashamed that they have had to cut back. But soon, it will be popular…fashionable…and, finally, almost obligatory.”

Not before time and we'll hopefully see it in the UK too. We've had years of conspicuous over-consumption on borrowed money. Frankly, the notion of 'Shopping as a hobby' sticks in my throat.

Too bad for retailers and those working in that sector but the whole thing has become so bloated and overblown that a clear-out is necessary.

As a retailer, my job is to entice people to spend with me, whether they need the item or not.
We are quite good at this.:D But have got to be better. I want days off and hols again.

I started the process of changing the direction of our business last week. ....after a total flash of creative inspiration.....not wanting to sound braggy or anything.

This will be the 4th significant change in 24 yrs.

I know that if we carry on with our current style, we will struggle through the next 5 yrs.........many factors are coming into play apart from the crunch.

There will still be spending by parts of the population.....I just have to catch them.
Fortunately, the whole Clone Town, World of Argus and Churned out of China style so prevalent in The UK is now becoming totally OFF trend.

So think of me !!!!!!, because, after being a creative S/E person for so long, I would last 1 hour in a mainstream, PAYE job.
In fact, the new concept is anti 'Conspicuous consumption' and most definately the opposite of 'A Vulgar Display of Affluence'.

Wish me luck

fc123

Pobby wrote: »

Well I am part of the chain.Manufacturers, wholesaler, retail.It`s grim!!!!I cannot remember it being this bad in decades.Business for me is about 70% down and that seems to be the case with others I talk to.Last week the biggest retailer in my industry ``fell over``.It would appear to be with huge debts which may well be the death toll for smaller suppliers involved.It`s a rocky road ahead children!

That's the worst bit...the others who fall down along the chain...get shafted on their owed invoices.
OH got done for 50k 4 yrs ago, won in court but no-one to get the cash from.
Still digging ourselves out.

WTF?_2

fc123 wrote: »

There will still be spending by parts of the population.....I just have to catch them.
Fortunately, the whole Clone Town, World of Argus and Churned out of China style so prevalent in The UK is now becoming totally OFF trend.

So think of me !!!!!!, because, after being a creative S/E person for so long, I would last 1 hour in a mainstream, PAYE job.
In fact, the new concept is anti 'Conspicuous consumption' and most definately the opposite of 'A Vulgar Display of Affluence'.

Wish me luck

'Go green'. Aside from being increasingly trendy because of the media, it generally coincides with a more frugal way of living so it's set to become increasingly popular I reckon. A damned good excuse to cut back and save money without losing face.

Plus the government looks set to use environmental issues as an excuse to screw even more taxes out of us so there will no doubt be tax advantages to being greener.

Bound to be lots of money in selling goods and services to enable a greener, cheaper, lower tax way of living.

Generali

fc123 wrote: »

That's the worst bit...the others who fall down along the chain...get shafted on their owed invoices.
OH got done for 50k 4 yrs ago, won in court but no-one to get the cash from.
Still digging ourselves out.

It's a problem - as a supplier you've got no idea really whether your buyer has the means to pay and lots of people trade while insolvent hoping that something will turn up McCawber (sp?) style.

I remember during the early 90s lots of businesses would get around the problem of not being able to get credit from the banks by not settling their bills on time. Some big companies did this as a matter of policy and I'm sure many still do.

This time around it'll be where the credit crunch has the biggest impact on the real economy first IMO - banks call in or reduce overdrafts to businesses, they can't pay their bills (so their suppliers go bust) or can't pay their staff. Or simply go bust themselves. So many people live from paycheck-to-paycheck that they won't be able to afford even a short period of unemployment.

fc123

!!!!!!? wrote: »

'Go green'. Aside from being increasingly trendy because of the media, it generally coincides with a more frugal way of living so it's set to become increasingly popular I reckon. A damned good excuse to cut back and save money without losing face.

Plus the government looks set to use environmental issues as an excuse to screw even more taxes out of us so there will no doubt be tax advantages to being greener.

Bound to be lots of money in selling goods and services to enable a greener, cheaper, lower tax way of living.

It's not obvious green....more recycling. Have been investigating auctions this week..........it's going to be quite fun too.

Frugal living has a look about it too...becomes a trend in itself (for those that don't have to be REALLY frugal) they can just appear to be.

Austin_Allegro

I have to laugh at this 'fashionable frugalism' that's growing as the credit crunch bites.

Some of us have been UNFASHIONABLY frugal for the last decade, because we worked out it was the only way to stay solvent amid the rising cost of living, even for those of us on above-average salaries.

fc123

Austin_Allegro wrote: »

I have to laugh at this 'fashionable frugalism' that's growing as the credit crunch bites.

Some of us have been UNFASHIONABLY frugal for the last decade, because we worked out it was the only way to stay solvent amid the rising cost of living, even for those of us on above-average salaries.

I'm not being trite and know plenty who have been frugal continually....but to acknowledge it as a growing trend does no harm......and to use it as inspiration too.
FWIW; the concept is a mish mash of a vintage business we ran through the last decade...earning from what was thrown away