W's economy: Whee!

Stores post disappointing January sales
By ANNE D'INNOCENZIO, AP Business Writer
7 Feb 2008
NEW YORK - Here's a sign of how shaky the economy has become: Wal-Mart says its shoppers are redeeming their holiday gift cards for basic items — pasta sauce, diapers, laundry detergent — instead of iPods or DVDs.
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On Thursday, the nation's retailers turned in their worst January in almost four decades as high gas and food prices, a slumping housing market, tighter credit and a tougher job market pushed consumers to the edge.

Just a reminder: "Personal consumption expenditures" (consumer spending) accounts for 70% of GDP. If economic conditions are pushing "consumers to the edge", that's NOT good news!