Treasury secretary Hank Paulson says the crisis is over, and maybe it is–for Wall Street. On Main Street, the bad news just continues to roll in. On an inflation-adjusted basis, American consumers are getting poorer by the minute–especially now that their houses are no longer self-replenishing ATMs. NY Post:
US workers are facing a nearly unprecedented belt-tightening as real wages are likely to fall for the eighth straight month in May while declining home values and a lackluster jobs market have cut off two traditional ways they could get some breathing room.
The ever-shrinking buying power of consumers was totally dismissed last week when the US labour Dept. put a rosy spin on a less-than-expected rise in inflation for April – saying prices rose just two-tenths of a per cent instead of the expected three-tenths of a per cent.
Whoopee, said economist Jared Bernstein, of the Washington-based Economic Policy Institute.
“When it comes to their living standards, many working people are facing a perfect storm: higher prices, squeezed paychecks, and the fall in the price of their most valuable assets, their homes.”
More from the Economic Policy Institute >
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