Mong.When your average Jo goes to work from MOnday thinking...

Mong.

When your average Jo goes to work from MOnday thinking about those unemplyemnt numbers from last night and with the constant thought of "Im i going to finish work today and come back tomrow". you can give him free petrol and Id bet MY v8 that he wouldnt go out and spend because he has more disposable income.


All the stimuli in the world which is designed to increase "consumer confidence" is based on an assumption of an underlying confidence in the labour market, so you bring interest rates down in a period of slowing growth and your average household will think "safe job, good economy, less mortgage repayments, more money in the pocket = lets go and have a good time" , but bring interest rates down in an environment of negative growth with the perception that if they dont come down we will collapse add to that Job cuts all around the world the same thought process will go something like this "ok so when I lose my job and we sell the house we can survive for at leat a month"