Prometheus 6

Count  on it. Plan on it. One third of the economy is consumer spending...I have no idea how much of it is on credit. I just know it's a lot, and that 's going to be drastically reduced going forward, forever.

I am doing exactly what economists do not want to see happen...with my new, good paying job, I am minimizing all spending, cutting back to replacing worn out stuff, until all my personal debt is paid off. 

Something New to Worry About: Deflation
By The Editorial Board

Hundreds of thousands of people are being laid off. The nation’s leading banks and carmakers need bailouts. The stock market has had an ugly 2008.

Well, here’s something else to worry about: deflation. This week, the government announced that prices fell in November for the second month in a row.

It might seem hard to understand what the problem is with falling prices. If all they mean is that we can buy our Christmas presents for less this month than we could have a month ago, maybe we can get the decked out Mac after all. What’s there to worry about?

A lot. If prices persist in their decline, they could be devastating to the economy — not primarily because of their impact on consumers’ spending habits but because of their impact on consumers’ ability to service their debts.