Golden Jackass Tobacco Shop

[JimWillieCB]

Amos Tversky's partner was Kahneman, way cool
I have cited Tversky's "loss aversion motive" several times

it says: "the pain of loss was found to be well in excess of the joy of gain... a powerful asymmetrical wealth effect"

if you start with a bunch of money, then lose your gains, you tend not to change your spending pattern

if you later lose some of your original stake, then YOU TEND TO SPEND LESS

when investors lost huge money in 2000 then 2001, they tended to continue spending, possibly because they lost their gains from 1995 to 2000

now they have lost a piece of their original stake
hence
CONSUMERS WILL SPEND LESS

end of story, as Nobel Prize Factory acknowledges that consumers are about to change spending patterns in a manner that adversely affects the economy, despite the denial by liars and other cheerleader whores from Wall Street

/ jim