Reply #2: Very confused signs

[zipplewrath]

A toney community nearby here has their bars and restuarants all full up again on weekends. It's all folks that were never particularly "threatened" by the economic down turn, in terms of consumer spending anyway. A guy I know that runs a wine store says he can see people spending money again. Some guys I know in construction say they are busy, and getting backed up. But in their case it's because many of their competitors are literally gone.

It is hard to tell if it is a case of the "rich" taking advantage of lower prices, or if the consumer is actually coming back to the markets. One must remember that despite the high numbers, "only" about 5 percent of the population lost their jobs. The other 95% were roughly in the same position they always were. That's a tad deceiving because of the "under employment" issue, and because of the employed people who are in trouble with mortgages. But the vast majority of people, in terms of cash flow (not long term savings or retirement accounts) haven't seen alot of change over the last 2 years. They've just been scared shitless. The quesiton is, are they still scared.