Tightening the Belt
Consumers have lost their confidence.
Sympathy is hard to spare when it comes to the rich, but there's more to the story than just fewer Coach (COH) bags and Burberry (BRBY-L) scarves flying off shelves. American households in the top 20 percent by income (making more than $150,000) contribute 40 percent of consumer spending, which makes up two thirds of the US economy. Money that the super rich spend eventually makes it way down to the clerks, managers, and delivery folks. And a lot of that money ends up in places like The Gap (GPS), or Wal-Mart (WMT). In short, it doesn't matter much who's spending less. A slowdown in consumer confidence and spending is everybody's business.
For more on the modern day plight of the rich, we turn to Hoofy and Boo.
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