Fashionably cheap in frugal economy

Now, 57 percent of Americans are shopping at discount stores. Another 28 percent have cut back on alcohol and cigarettes.

"Some industries will be hit a lot harder than others. Basic necessities will be OK. The hospitality industry may be challenged and clearly the auto industry is challenged. People are willing to keep their existing cars and push them a little farther," Mr. McCall said.

"Those industries that emerge from these difficult times will probably consolidate," he added. "Restaurants and department stores may merge and will likely emerge from this crisis in a very different form."

Consumers are reacting sensibly to the recession depression financial meltdown by reducing spending and debt. Never fear though, government is more than making up the shortfall by spending money which our children and grandchildren have not yet made.