The Federal rate cut in interest was a drastic move indeed, from the originally planned 0.25% to 0.5% (i have yet to confirm these), the change seems to be drastic measures indeed.
I guess the reason is to combat recession, and not just recession anymore. The peso will reach record highs again (well, the peso hit rock bottom already during the erap years so there's no way to go but up). Exporters always comlain that the strong peso is weakening their business , but hey if the dollar is depreciating, all other currencies are necessarily appreciating . . .
So there, if you have plans of doing some online shopping over at e-bay or in the US itself, soon will be a good time . . . hehehehe.
US holiday spending outlook is grim, say retailers
WASHINGTON -- The housing crisis and credit crunch will crimp US holiday spending this year, a retailers' association warned Thursday.
The National Retail Federation predicted sales will rise 4.0 percent in 2007 year to $474.5 billion.
That would be well below the 10-year average of 4.8 percent growth and represent the slowest holiday sales growth since 2002, when sales rose 1.3 percent.
"Retailers are in for a somewhat challenging holiday season as consumers are faced with numerous economic obstacles," said NRF chief economist Rosalind Wells. "With the weak housing market and current credit crunch, consumers will be forced to be more prudent with their holiday spending."
The group said the trend will vary among income groups, with well-heeled consumers able to maintain spending.
"Luxury retailers once again appear to be a bright spot as their customers have demonstrated the ability to maintain high levels of spending," the NRF said.
"Clearly the retailers most affected by the economy will be those catering to the low- to middle-income consumer. This could spell trouble for discounters and some department stores whose shoppers may be looking to trade down."
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