Crisis of Confidence for U.S. Consumers

November 12, 2008 - Sales of new vehicles have dropped 32% in the third quarter 2008. Consumer spending appears likely to fall next year for the first time since 1980 and, perhaps, by the largest amount since 1942. 1950s through the 1980s — Americans spent about 91% of their income, on average, and put away the rest. Last few years - Americans have spent close to 99% and saved only about 1%.



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