even before alan greenspans admission that americas red_hot economy is cooling, lots of working folks had already seen signs of the slowdown themselves. from car dealerships to gap outlets, sales have been lagging for months as shoppers temper their spending. for retailers, who last year took in 24 percent of their revenue between thanksgiving and christmas, the cautious approach is coming at a crucial time. already, experts say, holiday sales are off 7 percent from last years pace. but dont sound any alarms just yet. consumers seem only mildly concerned, not panicked, and many say they remain optimistic about the economys long_term prospects even as they do some modest belt_tightening.
consumers say theyre not in despair because, despite the dreadful headlines, their own fortunes still feel pretty good. home prices are holding steady in most regions. in manhattan,theres a new gold rush happening in the $4 million to $10 million range, predominantly fed by wall street bonuses,says broker barbara corcoran. in san francisco, prices are still rising even as frenzied overbidding quiets.instead of 20 to 30 offers, now maybe you only get two or three, says john tealdi, a bay area real_estate broker. and most folks still feel pretty comfortable about their ability to find and keep a job.
many folks see silver linings to this slowdown. potential home buyers would cheer for lower interest rates. employers wouldnt mind a litter fewer bubbles in the job market. many consumers seem to have been influenced by stock_market swings, which investors now view as a necessary ingredient to a sustained boom. diners might see an upside, too. getting a table at manhattans hot new alain ducasses restaurant used to be impossible. not anymore. for that, greenspan co. may still be worth toasting.
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