Has your standard of living changed? Are you spending less and saving more? Buying more name brands or still wearing last year’s designs? Sirloin or ground chuck?

Even a blind man can see that things have changed over the years – for the consumer – and according to Howard Davidowitz, chairman of Davidowitz and Associates (consulting and investment banking services to the retail industry) “The average American used to be able to borrow to buy a home, send their kids to a good school [and] buy a car… lot of that is gone.” Howard believes that the American’s standard of living is undergoing a “permanent change” due to an $8 trillion negative wealth effect from declining home values, a $10 trillion negative wealth effect from weakened capital markets and a $14 trillion consumer debt load amid “exploding unemployment”, leading to “exploding bankruptcies.”

Check out the vid below to see how Howard thinks things have changed, are changing and will continue to change… for the worse.

One may think that while the transition may be very painful, when looking at the end result, is this good or bad change?

(Source)