Tuesday, 21 July 2009

Americans Repaying Debt Most Since ‘52 Spurs Savings

Found an article on Bloomberg today. Maybe now they are starting to getting the idea about debt. Here are some excerpts:

"For the first time since Harry S. Truman was in the White House, Americans are paying back their debts..."

"While the proportion of consumers without jobs rose to 9.5 percent last month, household borrowing fell to 128 percent of the average family’s after-tax income in the first quarter from a record 133 percent a year earlier"

"We’ve never seen a pullback like this....We are seeing an adjustment, and it’s very painful and there’s a lot of collateral damage."

"Corporate America is going through debt rehab,” said Lonski, who’s based in New York. “The focus right now is on improving financial health and that probably will be at the expense of capital spending and hiring activity. Nothing will discourage capital spending or encourage cutbacks in staff more than much lower-than-expected sales."

"You are not going to buy a new pair of jeans if you don’t have a job yet"

Consumers "understand what they are spending more than ever," Mike Duke, chief executive officer of Wal-Mart Stores Inc., told employees and suppliers July 16 in Bentonville, Arkansas, where the world’s largest retailer is based. "This has brought on a new normal of how consumers view consuming, shopping."

Source:
Bloomberg News
Link: http://www.bloomberg.com/apps/news?pid=20601213&sid=atjMg9ctSAMo


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