Check out the stocks bouncing back.
The Dow is up more than 4 percent. Retail stocks are up nearly as much.
Governments are pouring money in to help bail out banks, the market is reacting favorably and all is right with the world, right?
Well, probably not. Reuters columnist James Saft argues that the bubble in the economy was not just in real estate, but also in consumption.
The bursting of that consumption bubble is already hurting retailers, of course. Just look at last week’s sales numbers.
The New York Times also points out that the one reliable bastion of conspicuous consumption, teenagers, is also having to pull back on spending.
As we all embrace the simple life, the problems for retail could well continue. After all, there weren’t a lot of Hollister jeans and big screen TVs on Walden Pond.
Also in the basket:
Sears names GE executive as CFO elect
Sharper Image focuses on expanding globally (N.Y. Post)
Shop Talk
Retailers, consumers and prices
Check Out Line: What was the real bubble?
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Posted by: Brad Dorfman
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