eco-journal26 - the credit squeeze The consumer confidence...

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Duc Hoang – ECON210 Journal date 10-30 According to the Economists, consumer spending fell 0.3% in September  after   remaining   flat   in   the   previous   month.   On   a   year   on   year   basis,  spending was down 0.4%, the first such drop since the recession of 1991.  Consumer spending has not grown since June. This is bad news for those  worried about a recession. In addition, consumer confidence has fallen to  the lowest level in decades given the decline in jobs, the stock market and 
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Unformatted text preview: the credit squeeze. The consumer confidence is a key issue for the economy. September's weak performance is a clear sign that a recession is underway. This weakness of consumers was not a surprise. The Federal Reserve has already reacted to the weakness, slashing its target interest rate down to 1% earlier this week. However, this rate cut may have a bad effect on business investment as assets value decline....
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