Over the past six months we've witnessed a large number of retailers falling victim to the current economic crisis; the most recent victim is Circuit City. While much of the decline in retail spending can be tied to the economic crisis, another driving force is a retail marketplace which has outpaced consumer earnings. Over the past 10 years, many consumers have been spending beyond their means. For the past 50 years, consumer savings rates have declined to almost zero. Consumers have also been racking up more and more debt, satisfying their desires for immediate gratification through goods and services by using credit cards, or pulling equity out of homes which are often already heavily leveraged.

Obviously this type of spending was not sustainable. We've known that house bubble had to burst. We just didn't anticipate it would burst with the banks and stock market.

Today's economic crisis has drammatically impacted consumer confidence. I'd like to learn more about how the economic climate has changed your spending (if at all). Please click the link below to provide your feedback. After completing the survey, you'll be provided with instant results for all survey participants.

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At the Tri County Economic Forecast Conference, Dr. Robert Eyler did an outstanding job of highlighting the factors affecting all of us at the national, state and local level. We look forward to hearing more from Dr. Eyler in the future; his dedication to supporting regional economies by reaching out to education business owners and elected officials is vital to helping us grow out of our current economic crisis.

Here is a copy of the presentation delivered by Dr. Eyler. Building upon his formal presentation, Dr. Eylers response to questions highlighted his knowledge of the problems we face, and the actions necessary to build a strong North State economy.

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Consumer confidence is suffering as a result of a number of factors, including (1) the housing bubble (and the resulting decline in home values), (2) banking instability, and (3) stock market declines (including retirement, 401ks, college funds, etc). The resulting economic uncertainty is causing consumer to reduce spending, which is further causing local, regional and national retails to suffer. Today's news about the demise of Circuit City is yet one more business falling victim to the economic decline. We are likely to see more local businesses impacted by the reduced consumer spending. The next business may be another restaurant, or one of the many older businesses that have become institutions in North State communities (I will not even suggest a name for fear of jinxing the business).

Like so many of you, I've been very busy with work and family, I haven't been taking the time to write on this blog (ok, I also misplaced the password to log in). Well, I'm back. I'll post new information, data, and articles on topics related to the regional economy, regional economic development and our current economic crisis.

I look forward to hearing from you through your comments.

Dan