Quotes of the ‘new reality’ of the Amercian consuming monster from Pimco Mohamed El-Erian

(Last Updated On: July 30, 2010)

Quotes of the ‘new reality’ of the Amercian consuming monster from Pimco Mohamed El-Erian
As you know, I love Bloomberg so much I read it daily. There is the odd news story that catches my attention but there was one quote that I believe is very true. Pimco’s Mohamed El-Erian, said something along the lines of:
world’s biggest bond fund, declared a “new normal,” a global realignment in which the U.S. consumer, no longer a hungry monster, became cautious and subdued.
In the same article of
http://www.bloomberg.com/news/2010-07-29/americans-splurge-on-ipads-while-broke-in-new-abnormal-economy.html
had some gem quotes that include from retailers and small business owners:
“It’s really tough right now,” Johnston says. “I don’t do many full-on spa days anymore.”
Yet there she was, shopping and vacationing in Vegas with her husband.
“We’ve pulled out all the stops. We’re staying at the Bellagio,” she says.
“All of my customers think we are out of the recession,” says Marika Baca, an associate in the women’s department at the Barneys New York store. “This time last year, it was bad. But now the women who were reluctantly picking up one piece are easily buying three.”
“My feeling is that you can see week-to-week differences today that are far more volatile than what we have been seeing,” (CEO of a dollar store chain)

“Concerns about the labor market are casting a dark cloud over consumers that is not likely to lift until the job market improves,”
“If they lose money by spending it on something, at least they have something to show for it,”
“I don’t see it getting any better,” she said. “I need a new car, but I don’t plan on getting one anytime soon.”

“I was talking to someone recently who said to me, ‘I bought the iPad because I can’t afford a new iMac,’” says Carla Serrano, chief strategist for TBWA/Chiat/Day, Apple’s advertising agency. “O.K., fine. But the iPad does hardly anything that an iMac can do.”
“I was talking to someone recently who said to me, ‘I bought the iPad because I can’t afford a new iMac,’” says Carla Serrano, chief strategist for TBWA/Chiat/Day, Apple’s advertising agency. “O.K., fine. But the iPad does hardly anything that an iMac can do.”
‘There is still risk. I gotta cut back.’ But this is not a typical one-year recession. Life has to have some normalcy. I have to have some luxuries.”
“We’ll be looking at price tags a little more than we normally would,” she said.

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