The economy in denial

Free Market News Network
by Axel Merk

09/22/06

Almost every day, a high profile company directly or indirectly targeting the US consumer warns that its outlook is bleak. Let it be Yahoo warning about advertising revenues; let it be Kellogg's warning about its high costs; let it be Dell's warning that its eternal rebate programs cannot push sales anymore; let it be the automakers that sell many of their brands at prices below last year's level, yet are still unable to boost volume. All these incidents are linked to the US consumer; and US consumer spending, in turn is very closely linked to the health in the housing market. It also comes as no surprise that so far this year, the US dollar has fallen significantly versus a basket of currencies...

//www.fmnn.com/Analysis/156/6029/AXEL.ASP?nid=6029&wid=156


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