Consumer spending was flat in the US in August. Adam Lass says this zero means more than the much-hyped $700 billion figure currently grabbing the headlines. The bottom line is consumers are running scared, and that is bad news for retailers and manufacturers.

The news is saturated with Hank Paulson’s $700 bailout plan. This is diverting attention away from the increasingly bleak outlook for the wider economy.

Rick Pendergraft says no bailout can immediately solve the problems in the housing market. And all indicators suggest these will run well into 2009 at least.