UH-OH: USA'S CONSUMERS WON'T BAILOUT ECONOMY

NYT:  "For 2012, Signs Point to Tepid Consumer Spending"

Consumer spending makes up 70 percent of the economy, so until it ignites, general growth is likely to be sluggish. 

Macroeconomic Advisers, a forecasting company, projects growth of around 2 percent for the first half of this year, down from an estimate of 3.6 percent in the fourth quarter of 2011 and just 1.8 percent in the third quarter. 

For consumers, the reasons for the sluggishness are clear: incomes are essentially flat, job growth is modest, and more than 40 percent of the new jobs in the last two years have been in low-paying sectors like retail and hospitality. 

... And with more than one in every five borrowers still owing more than their homes are worth, many homeowners feel too pressed to spend on much more than the essentials.

RTWT.