If the markets are concerned about the U.S. consumer starting to weaken, we're now seeing global consumers curb their retail spending as well.

Bloomberg reports that Marks & Spencer Group Plc, the U.K.'s largest clothing retailer, dropped severely in London trading this morning off the back of a surprisingly weak holiday sales period.

Bloomberg reported, "Marks and Spencer shares slid as much as 21 percent after Marks said today that revenue fell 2.2 percent at stores open at least a year in the fiscal third quarter ended Dec. 29, the first same-store sales drop in 2 1/2 years. The median estimate of eight analysts surveyed by Bloomberg was for growth of 1.1 percent."

Oof. That's almost a -3.5% surprise to the downside.

"If you are an average person on an average salary in the U.K., you are having a very tough time,'' Chief Executive Officer Stuart Rose said in an interview on Sky television. "About the only thing that isn't going up is the cost of clothing. People are being squeezed.''

Zack Miller the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

I went on a shopping expedition with some friends last night and, like many other shoppers was lured in by a a rack at H&M bearing the following sign: "Buy 1, Get 1 Free" with the usual caveat that the free item must be of equal or lesser value.

I picked out some shirts and stood in line for about 15 minutes while the customer in front of me argued with the cashier about the way she was being charged for her "Buy 1, Get 1 Free" purchases. The cashier patiently explained that, if she really wanted to, she could save some money by paying for everything separately, which would require about nine separate transactions. What?

Here's how it works. Let's say that you buy four items from the "Buy 1, Get 1 Free" sale, with the following prices:

I've heard lots of excuses for weight gain -- depression, stress, work, injuries, kids, but this is a new one: Blame your credit cards!

According to a piece on BankRate, people tend to spend more when they use a credit card instead of cash, and that also applies to food purchases: "A Visa study of 100,000 restaurant transactions found that customers spent, on average, 30% more than those who paid with cash. That 30% can be the difference between a small order of fries and soft drink and a supersize order, or it can be the addition of a high-calorie dessert."

That an increase in the size of the check at a restaurant would lead to an increase in consumption is a no-brainer. So here's a diet tip: Pay cash when dining out. It'll keep your wallet heavier and you body lighter.

While there are plenty of fast-talking late-night gurus out there who want to give you the information you need to get rich (all for the three easy payments of $29.95, but wait there's more...), the New York Times's Damon Darlin has some of the best personal finance advice that graduates don't want to hear:

• Save 10% of your income right off the top.
• Buy stuff used.
• Enroll in a 401(k).
• Don't borrow money to buy depreciating assets.
• Make your own coffee.

He offers two compelling reasons to start saving early. First, there's the most obvious one. Starting the cycle of compound interest early means your money will grow more. But then there's another one that I hadn't really thought about. Living below your means conditions you to be comfortable with a less expensive standard of living, which will also save you money in your retirement years.

There's another important thing to remember, and it's probably the best reason of all for being wise in your money management. I first realized this paradox when I was talking to my friend "Jim," who, after years of poor spending habits, has run up a huge amount of credit card debt, and lies awake at night worrying about money. He used to make fun of me for my Scrooge-like spending habits and obsession with saving as much money as possible. The other day, we sat down to discuss his problem.

According to a piece in today's Wall Street Journal, the troubles in the subprime lending industry could spill over into retailers [subscription required] catering to the same low-income customers. The logic works like this: People who are struggling to pay their mortgages (as so many are, as evidenced by the troubles in the subprime industry) will have to cut back on their spending. Companies that could suffer include Wal-Mart Stores Inc. (NYSE: WMT), Sears Holdings Corp.'s (NASDAQ: SHLD) Kmart, and convenience stores, as well as other companies catering to lower income Americans such America's Car-Mart Inc. (NASDAQ: CRMT).

So what are some companies that investors could look to to avoid exposure to the subprime collapse and its repercussions? Basically, any company catering to an upscale clientele: Tiffany & Co. (NYSE: TIF), Coach Inc. (NYSE: COH), Inter Parfums Inc. (NASDAQ: IPAR), and similar stocks.

And, from that Wall Street Journal article, one of the best quotes I've seen in a long time:

"Having a credit card is kind of like being a millionaire," says Scott Davis, a 37-year-old facility maintenance worker who lives in Arlington, Texas. He says he and his wife, whose household income is $38,000 a year, had "seven or eight" credit cards they used to buy sporting goods, go on vacations and remodel their home.

Hmm...

This is an article that I've been wanting to see for a long time: The new issue of Money features a story called The Weird Science of Pricing: Seven elementary lessons in why things cost what they do and how to use that knowledge to get a better deal. The story is not currently available online, but it's worth picking up a copy of the April issue for it, or you can just read it in the grocery store.

The piece focuses on the tricks retailers use to get you to think you're getting a good deal. Did you know that pricing items at $9.99 instead of $10.00 works because we read from left to right, and process information in that order? This makes me wonder -- would someone who is in America but speaks Hebrew (which is read right to left) for their first language be susceptible to the 99 cent gimmick? Also, what is up with Wal-Mart's "Every Day Low Price" of $1.97?

If the psychology of marketing and money interests you, order a copy of Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the New Science of Behavioral Economics. On Amazon, it's only $9.75.

According to a piece recently in the Wall Street Journal (Subscription required), Capital One is offering a new credit card with a flat 1% cash refund on card spending, with another 0.25% annual bonus each November. Fidelity Investments offers a card with a 1.5% cash refund, and EmigrantDirect.com has one offering 1.4%. What makes Capital One's card unique is that if offers very few restrictions and really is a "flat" refund on all spending. Capital One's card has no annual fee and no limits on earnings or other restrictions.

Here's the kicker: Of course, in order for this to work, lots of people have to pay off only a portion of their bill each month. With so many consumers paying 15%+ interest, the 1% cash refund may not be that great of an expense. This is a glaring reminder of how much money credit card companies are making: They can afford to literally give people money. Americans have a serious addiction to consumer credit, and it will result in disaster. With the nationals savings rate below 0, how exactly are we funding our retirement?

If someone handed me one million dollars and said "Write an interesting, easy to understand book about credit scores and how to improve yours," I would hand the money back and say it cannot be done. Liz Pulliam Weston is probably one of the only people on the planet who is able to that successfully with her book Your Credit Score: How to Fix, Improve, and Protect the 3-Digit Number that Shapes Your Financial Future.

As a responsible saver and spender, I figured that I knew enough to get by without reading this book. I was wrong. The credit scoring formula is just that: a formula, with all kinds of idiosyncrasies that may cause your credit score to have little do with how responsible you are. For example, as a young person with little credit history, I thought that I could build my credit up by getting a credit card, using it instead of a debit card, and paying it off in full each month. This is certainly a financially sound thing to do, but there's one problem: Surprisingly, it could impact my credit score.

China may be kicking our collective butts regarding our colossal trade deficit, but it is also doing its fair share of spending too. Spending by China has affected commodity prices (metals, concrete), energy prices (oil & gas), construction service prices (design, planning, engineering, management), shipping, housing, clothing, electronics, you name it. The Chinese have been spending with reckless abandon -- all the time buying our treasury notes and expanding their economy at the rapid pace of 8% to 10% GDP annually. Read the Economist for more, China forecast

Growth in China has spurred the U.S. and the global economy. Reading the comments I have received to yesterday's post Venice Beach as economic indicator: Consumer spending slows, there seems to be plenty of negative sentiment out there about the U.S. economy. Making the case for recession is not hard to do. One could simply look at our run-away trade deficit and Federal spending. With a minimum of economic understanding, you could get scared to death.

My "favorite feature" of the U.S. budget (deficit) is the cost of the Iraq war which is an "off-line" item -- meaning they do not count it in their figures. That's hysterical. Let's all just take our mortgages and rents and put them off-line. Then we won't have to worry about them and no one will notice. The Feds should have a "Department of Pretending". EVERYONE WOULD UNDERSTAND THAT PERFECTLY.

I think the Federal branch learned this trick from Wall Street. It's called a "one-time expense" and since it's not a "recurring expense," analysts just set it aside when determining the value of a company. That stinks, but it will have to be the subject of another story. The problem is we have had this one-time expense (Iraq) for several years and we can anticipate several more.

But I have digressed. The main point I wanted to make here is that we can all make the case for a recession. Trade, debt, spending, energy, housing and numerous other areas support the case. Commenter's have raised these issues and see bad times in the next few years.

While I agree that is a possibility, I think that global recession will be postponed at least until the Chinese have their BIG OLYMPIC SHOW in Beijing, regardless of any other factors. I believe the Chinese government has been postponing numerous "pipers they have to pay" because of the upcoming Summer Olympics. This has been a major focus since they won the right to be the host in 2008. Some of their early and rapid economic expansion can be traced to this effort. When it is over they will utter a collective (leftover communist term) sigh of relief. When that happens, spending will slow, interest rates will be allowed to rise and only firms specializing in the clean-up of the environment will be popular.

China has not only been slow to curb its unsustainable growth, but one of the pipers they will have to pay will be for cleaner water, air and city streets and farmland. The first part to any clean-up campaign is to stop doing those things that are causing the problem; which is everything, in this massive national expansion.

I do not see the same doom that many see. But when China takes that HUGE sigh of relief, then we may have a recession.

Sheldon Liber is the CEO of a small private investment company and the vice president for Design and Research of an Architecture & Planning firm.