For Immediate Release:
November 28, 2006
Contact: Ian Mathias 410-864-1652 www.dailyreckoning.com: Holiday Shoppers Fiddle While Their Financial Future Burns Baltimore, MD: In a stunning act of consumerism, Black Friday shoppers spent a record $360.15 per household over the course of this past weekend. Up 18.9% from last year, many financial experts are surprised to see consumers spending more than ever despite the recent housing market slowdown. "Nearly every current financial trend is telling us to slow down our spending," said Addison Wiggin, author of Empire of Debt. "But we are clearly bent on living beyond our means." Few could disagree…a recent Federal Reserve study showed that consumer debt now exceeds $2.36 trillion. Coupled with the current national debt of over $8.6 trillion, the U.S. may have dug a grave of debt too deep to escape. To make matters worse, Wiggin noted that the fruits of our spending are mostly enjoyed by those outside the U.S. "Americans grow 'richer' in SUVs, flat screen TVs, and other flotsam and jetsam (that comes mostly from Asia), while Asians grow richer in U.S. financial assets and treasury bonds." "Whether or not the average household needs a flat screen TV isn't the issue," said Wiggin in response to the millions of people that amassed outside retailers this weekend. "Consumers are no longer dipping into their savings to spend at Wal-Mart. They are relying on credit - the type of debt that is regularly passed on to foreigners." "In 2005, the average consumer spent $20 for every $19 he earned," Wiggin went on to say, "and that was during the peak of a housing bubble that appears to have now come to a dramatic end." Many consumers have (perhaps unknowingly) lost thousands of dollars in home equity, and as spending habits accelerate out of control our debt becomes more insurmountable every day. "But who worries about these trends during the holidays?" asked Wiggin. Perhaps more of us should. Addison Wiggin is the editorial director of The Daily Reckoning, a daily, free e-letter that weaves information about the financial world, investing, and everyday life into an educational and entertaining format. Along with Bill Bonner, Wiggin is the author of Empire of Debt - a New York Times Bestseller that draws attention to the ever-rising U.S. debt crisis. He also serves as the executive publisher of Agora Financial, a multi-million dollar financial research firm and publishing group based in Baltimore, Maryland.
 | 
