As the Dow rises and falls, topping new highs and bottoming out in new lows, investments around the world are feeling the pinch of an economy based on speculation and consumer spending. The current economic crisis is the result of a wide range of different causes, though they are all interrelated. Consumer spending is the basis of the entire economy; without it, manufacturing slows to a snail's pace, stock prices plummet and the world economy takes a tumble.
Retail sales across almost every industry are at the lowest point in more than three years. Why is this? Simply put, consumers either lack the money to buy new goods, or are stockpiling the little bit of cash that they have. Most consumers simply do not have the money to splurge on new purchases, though. This is the result of job cuts, increasing fuel prices, the real estate crunch and many other causes.
However, for consumers in need, a cash advance can provide the funding needed until the next payday. This can be a valuable tool, both for the consumer and for the economy. By providing needed funding, these advances can prop up a floundering economy, boosting retail sales. However, it is not a "cure all."
Other moves are being made to stabilize the economies of word nations. Unlimited short-term loans have been extended to the credit sector, in order to keep credit flowing to consumers, bailout floundering credit companies and even prop up worldwide and US banks. In fact, the US government may soon own a very large chunk of the banking industry in the nation. For most consumers, these moves mean little, if it does not accompany a reduction in the general cost of living, though.
Not all news is so bleak, though the worldwide economy may appear to be plummeting. Oil prices have recently been cut, allowing consumers to save some much-needed cash at the pump. Is this enough to slow the economic decline? While it is unlikely that simply cutting fuel prices will stimulate the US and world economies, it can help consumers attain a certain peace of mind about their expenses. When coupled with innovative payday advances, this may be a glimmer of light at the end of the tunnel.