RETURN TO VALUE

The economy has been a powerful force for change. More than President O'mama, the economy has brought real change to America. Nowhere is this more clear then in consumer spending.

As we watch the stock market dive lower we need to remember that for each sale that drives stock lower, someone is taking cash out of the market. Where is all this cash going? It isn't going to buy new big fancy homes like three years ago. And, It isn't going to buy new SUVs like in the past. People are clearly holding on to their money.

As I watch for signs of cash turning up in new places, I find a general return to value. People are spending, but they are spending better. All that stuff they know was wrong has nearly stopped. Today, people with money are spending it on those things that the need and on value.

This includes groceries. The grocery store is booming. Suddenly cooking is cool and more and more people are skipping the long wait and crappy service for an over priced mediocre meal. Chains, like TGI Friday and others, are begging for business when two years ago you had a rude hostess tell you it would be a 30 minute wait. Today you can stay home and cook in those 30 minutes and save half the cost of that meal.

People are also spending on cars. Not new cars, Used cars and car maintenance. More and more people are saying, "I really don't need a new car payment." They are fixing the car they drive and deciding to keep it another year. Pam's convertible is paid off and it is 7 years old.

Me, I'm saving too. For the past ten years I have had a running fight with the cleaners about my shirts. I ask for Heavy Starch. The shirts come back limp as a wet noodle. I complain and they act like I don't know anything about laundry. Now I buy starch and Iron my own shirts. Guess what...I do a better job and they are cheaper.

We were promised change and change has come to America. The one good thing about all this is that service will have to improve if we ever plan to return to the "good ol days."