A new report issued by the Commerce Department has shown that average consumer spending fell in September for the first time in five months, a development that has been attributed to the ending of the Cash for Clunkers automotive rebate program. This drop in consumer spending matching analyst estimates and follows a 1.4 percent jump in the previous month.
Consumer confidence has taken a hit in recent months because of stagnant wages and growing unemployment, two factors that have raised worries that consumers will cut back spending in the coming months.
Analysts also worry that consumers will grow reliant on government programs, …read more

Here is what Bush and Paulson had to say this morning:

Read my take, and share your own, on my post about President Bush and the economic crisis.

I’m actually writing this as President Bush talks, so here are some of my random thoughts on Bush’s comments on the economic crisis.
“Pivotal moment.”
Really? What will we do? Will we change the way we do things? Perhaps abandon an economy that is so based on debt and consumption?
“Free enterprise” and “only when necessary”
Apparently there is no “free enterprise.” It’s all about socializing the risk associated with massive private profits and decisions. Decisions made mostly upon greed.
“Address the root cause”
No, no, no, no, no! The root cause is not the fall of the housing market. It’s the policies and the lending …read more