We are now in our second week of "official" holiday shopping and there is a huge shift in consumer habits. They are buying with CASH and are shunning credit cards! Personally, I like that trend. but since the average transaction with a credit card is typically 20-40% higher, this does not bode well for retailers. Holiday Shoppers Shun Credit Cards Use Cash; Self-Serving Fed Infomercials "Only 26 percent of people who shopped over the weekend said they used credit cards for their purchases, according to a poll conducted for Reuters by America's Research Group. "That's an amazing shift in consumers' habits," said Britt Beemer, founder of America's Research Group. A total of 39 percent said they used cash, while the remaining shoppers used debit cards, the survey showed. Consumers shunning credit cards is a bad sign for retailers, since people who buy gifts with a credit card tend to spend anywhere from 20 to 40 percent more on the gift, Beemer said." Mish's Global Economic Trend Analysis: Holiday Shoppers Shun Credit Cards Use Cash; Self-Serving Fed Infomercials It's still early and habits may change. Sadly, this is a catch-22 for Americans. If the trends continue, it will be a solid sign that the economy is not getting better. And if consumers switch gears and begin to buy on credit, that will be a sign that consumers haven't learned a thing over the past 2 years.