Consumer Demand For Nearly Everything Plunges

Retail stores and exporters alike are in deep trouble as consumer demand for nearly everything is plunging. Let's take a look at some proof starting with Japan Exports Plunge Record 27% as Recession Deepens


Japan’s exports plunged the most on record in November as global demand for cars and electronics collapsed, signaling more factory shutdowns and job cuts are likely as the recession deepens.

Idle Cranes From Long Beach To Singapore

Idle shipping cranes at Frozen Ports From Long Beach to Singapore portend a bleak 2009-2010.

Unsold Autos Pile Up on Lots

In the midst of the world's biggest auto slump in decades, Toyota May Cut U.S. Payroll as Unsold Autos Pile Up on Lots.

Weakening in Demand For Temporary Help

The temporary help market is grim. Staffing giant Manpower Sees Rapid Weakening in Demand

Manpower Inc. lowered its financial forecast for the fourth quarter, in the latest sign that the job market is weakening rapidly, and that the troubles are spreading to Europe.

Pudding Is Served

When Japan faced deflation it had an internet boom and US consumer demand (exports) to cushion the blow. Japan also had savings to fall back on. The US has no such cushion, no savings, no source of jobs, and an extremely high level of consumer debt. I have been saying for years those factors make the deflationary pressures in the US far worse than anything Japan faced.

Pudding is served. That pudding is called deflation. And unlike Japan, the US threatens to take much of the world down in a deflationary spiral right along with it.

Eventually this had to happen given that nearly every country in the world, in some fashion or other, became hugely dependent on the US shopping center economic model that is now history.

http://globaleconomicanalysis.blogspot.com/2008/12/consumer-demand-for-nearly-everything.html

and think the supply siders create demand through advertising. The invisible hand of the market place will always insure that the demand side is paid just enough to keep the world turning. When that is shown not to be the case (see: the late 70s), they introduce easy credit with no debt ceiling.

They never realize there is an absolute debt ceiling, when servicing debt with even ridiculously low "minimum monthly payments" set by credit card companies starts to eat into subsistence. When that happens, the whole thing falls apart as creditors realize they're not going to get paid the whole amount they've lent and refuse to go out on a limb by relaxing payments and easing terms.

That's about where we are right now, with credit drying up all over the place and people having to face living within means that have been inadequate for 30 years while paying off staggering amounts of debt. It's not going to work and it's going to be a wild ride while Congress extracts its collective thumbs from its collective ass and tries to figure out just what went wrong.

I do hope we manage to instill in the coming generations a deep skepticism of any economic system that relies either on a free market fairy or on the perfection of the human race to work.

i wanted to put new windows and furnace in my 1973 no efficiency sliding plate windows home but i could`t get a loan on my 35% equity on my home.the loan company stopped all equity loans because they had no idea when the value of housing was going to stabilize.

around 8000 dollars to buy products made in america and installed by my local contacters....

If we have no jobs we can't buy what we make (or made).

Wat

what we REALLY don't need?

Do this complicated math equation, if you will, oh never-make-a-sacrifice business leaders.

With every thousand-plus layoff notice, us workers grow more and more scared that it's going to be US. So I'm thinking maaaaybe anything other than necessity purchases aren't going to happen.

See . . . if we have no JOBS . . . we have no ability to BUY things.

And . . . with no ability to BUY things . . . you don't have this little thing called "BUSINESS".

Following me thus far?

Also, don't count on your Chinese slaves . . . you remember, those people you so intelligently replaced all of our manufacturing base with, all so you could have ostentatious profit and your cigar buddies could buy luxury items . . . that make your products to be able to BUY them. See, they don't make enough.

Sooooooooo . .. with you continuing to destroy all opportunity for this economy to recover and y'all not having much in the way of options in continuing the stupid "quarterly profit above all" mentality . . . . what does that leave you to DO?

"Why, lay MORE people off, of course! HA HA!! Our bottom line is saved!!!!"

Siiiiiiiiiiiiiiiiiggggggh. Yeah, good luck with that.

Part of the problem with this economy is the business leaders who still think they can live the perks, wine and roses life they did under Bewsh. Judging by AIG guy's statements yesterday ("We NEED bonuses so's our spoiled little bitch-boys who we call 'top talent' will remain HAPPY and LOYAL to the company!"), the guillotines would have no short lines were I to run things.

Chop one brazen, stubborn and insufferable criminal head off, 395 others will get the message: START. PLAYING. BALL.

And stop laying people off already. Stupid.

wasn't such a hot plan.

During periods of high unemployment, the Fed usually extends unemployment benefits. The current Administration has already done so, twice, I believe and it won't surprise me if the next Administration extends them further as needed.

Most workers are able to retrain or otherwise get a job while on UI, but there has always been a portion which run off the end of their benefits. In a recession, of course, that portion goes somewhat higher.