March 5, 2006

A Good Reason to Doubt Reports that the Economy is Doing Well.

From the Democratic Underground

Another argument is that the wealthiest 20 percent of American families account for roughly 40 percent of consumer spending, spending roughly 4.5 times as much as the lowest 20 percent, something Citigroup's chief U.S. equities strategist Tobias M. Levkovich pointed out in a recent report. The implication: This group isn't going to run out of money anytime soon. If a healthy economy depends on the wealthiest Americans continued spending on $200 haircuts and $500 seven-ply cashmere sweaters, we can all rest easy.

Posted by Spicolli at March 5, 2006 11:57 PM