THE OBAMA EFFECT

The first day of December brought mixed economic news in this deeply troubled economy of ours. First, the moderately good news: consumer spending on Black Friday was better then the economic experts expected. More money is also expected to be spent today, Cyber Monday, than these same experts were predicting a few weeks ago. Could this be part of a "Obama Effect", a positive reaction to the President-elect's savvy Cabinet choices and his proactive approach to trying to fix the economy even before he's in office? More likely, the modest boost was a result of the deep discounts on consumer goods (especially home electronics) that desperate stores used to lure consumers to the malls over the weekend.

Now for the sobering and darkly funny news that came down today about how the stock market fell when it was announced that the recession has actually been in effect since last December. Funny, most people who don't work on Wall Street or drive a Lexus or Range Rover probably had already figured that out.

Then there's this post from the always informative Salon.com which lays out exactly how deep the rabbit hole goes and why people shouldn't start to feel too cheeky about this weekend's numbers. Read it, if you dare and then resist the urge to go down to Walmart and buy yourself a flat screen TV. Remember, next year your credit cards will almost undoubtedly have their limits reduced and their interest rates raised while another 3-6 million Americans will find themselves laid off.

Merry Christmas everyone.

And peace...