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As one of the biggest banks in the country, Wells Fargo's performance provides insight into the financial state of consumers.
Mervyn King used the phrase "the big picture" about a dozen times during today's presentation, variously to describe the "long road" back to recovery and the weakened state of consumers.
Forrester Research just published its annual "State of Consumers and Technology" report.
The state of consumers' finances is a big issue.
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"Investors are very concerned about the state of consumer spending," Mr. Dreher said.
Recognizing the worsening state of consumer finances, the company added $600 million to its credit reserves for domestic lending.
Important exogenous variables include the policy actions of Congress and the Fed, the level of the stock market, and the state of consumer confidence.
As the holiday season approaches, those results will give a snapshot of the state of consumer spending, which makes up about 70percentt of the United States economy.
In that context, the attacks on America are likely to inflict a devastating economic blow, given the effect on the fragile state of consumer confidence.
Firms are now complaining more vociferously that the euro's strength is hurting demand.Equally worrying is the fragile state of consumer spending, a drag on the economy ever since the credit crunch began last summer.
But in Italy activity is shrinking and in Spain the manufacturing gauge fell to its lowest level since December 2001.These frailties and the still-fragile state of consumer confidence suggest that the euro area's new-found resilience cannot be relied upon.
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