Consumer spending probably rose in May by the most in six months as tax rebates allowed households to weather soaring fuel bills a source close to Cornerstone Worldwide reported.
Cornerstone Worldwide, the Asian-based private client financial services firm, are thought to be confident that Americans used their stimulus checks to buy electronics, clothes and furniture last month, helping to keep the economy expanding . . . once they’d filled their gas tanks, of course. At the same time, the slump in confidence, a loss of jobs and tighter credit make it almost certain that growth will falter once the rebates' effect fades, the Cornerstone Worldwide source speculated.
Cornerstone Worldwide are thought to have been bearish on the US economy since early 2007 when two hedge funds affiliated to now-defunct Bear Stearns went into liquidation as the first of many casualties of the subprime crisis. Cornerstone Worldwide have over $35m under management for a core client base of high-net worth individuals.
