As the jack-o-lanterns fade away and the approach of Thanksgiving draws near, one thing comes to mind: Christmas. Yes, Christmas. You and I are both thinking it. Here in Seattle the Christmas lights have appeared. Before you know it everywhere you turn Christmas lights and wreaths will be hung all over the city streets. Every store will soon have signs hanging in their windows celebrating 10% off or 20% off.
As the holiday decorations take over and the Christmas music starts to play in department stores, I'm sure everyone has thought about what they're buying their loved ones? I know I have. I also wonder if our Federal Reserve Chairman, Ben Bernanke, is thinking of what gifts he should buy his loved ones. Yes, I realize Bernanke is Jewish but Hanukkah involves gifts too.
At a central banking conference in Germany, Bernanke said that our financial markets remain under "severe strain." Of course, it doesn't take a genius to figure out our nation continues to face economic hardships.
The mayors of Phoenix, Atlanta, and Philadelphia want a part of the $700 billion bailout to help struggling cities. Of course a spokesperson for Henry Paulson said that "assistance to local and state governments wasn't the purpose of the bailout funding." If the taxpayers' money is intended for Wall Street instead of Main Street, where does that leave the rest of America?
While Bernanke and other prominent politicians and business people talk about our economy and Wall Street, I see family and friends pinching pennies. My siblings are checking in with one another to make sure they have a spending budget for this year's holiday season. More of my friends are inviting friends over for home cooked meals rather than going out.
Consumers have been sharply cutting back on their spending and retailers are acutely aware that it could impact their holiday sales. The Wall Street Journal's Market Watch issued a press release saying:
---
MarketTools, Inc. today unveiled the results of its November/December 2008 Insight Report focused on the U.S. economy and holiday spending during these turbulent economic times. The nationwide survey of 1,000 U.S. adults reveals that in the face of a clear economic downturn, 58 percent feel that the economy has reached a low point and many people (47 percent of respondents) feel the economy will stay at this low point for awhile. This holiday season and beyond, Americans will spend with caution and marketers will face the challenge of keeping these consumers enthusiastic about high-value purchases.
---
Clearly the most happiest time of the year could result into the most thriftiest time of the year.[[In-content Ad]]
