Yes, this surge of propaganda from the banking industry is intended to boost consumer confidence contrary to the public's own assessment based upon their own personal budgets, paychecks, and bills. (Christmas merchandising, now at stake, is really pushed by the real Scrooges on Wall Street who could care less about religion or morals). These discretionary income facts must be looked at more closely to see if such confidence is warranted.

The number of households may have increased, but the amount discretionary income is declining due to fuel prices (included in all consumer goods, like eggs at $2/doz), and home heating and energy. Americans are now paying $3.20 per gallon vs. 1.50...

Yes, this surge of propaganda from the banking industry is intended to boost consumer confidence contrary to the public's own assessment based upon their own personal budgets, paychecks, and bills. (Christmas merchandising, now at stake, is really pushed by the real Scrooges on Wall Street who could care less about religion or morals). These discretionary income facts must be looked at more closely to see if such confidence is warranted.

The number of households may have increased, but the amount discretionary income is declining due to fuel prices (included in all consumer goods, like eggs at $2/doz), and home heating and energy. Americans are now paying $3.20 per gallon vs. 1.50 per gallon before the Iraq war. When cost of these necessities rises (about 5% vs. a year ago now, but much higher compared to 2002) then, unless income increases at a higher rate, discretionary income falls. But there is more....

Where have Americans got their discretionary income? Answer: Debt! And this debt is what is fueling the banking crisis (sub-prime loans, defaults), which WILL have an effect on consumer spending:

evidence is mounting that a debt-burdened and saving-less US consumer – that until recently used its home as an ATM and borrowed against its housing wealth - is now on the ropes and at its tipping point.

The Coming US Consumption Slowdown that Will Trigger an Economy-Wide Hard Landing