The economy is DEFINITELY to blame. Two weeks ago, I was eating in my cousin's fancy restaurant. Her and her husband also own an upscale furniture store. I spoke to them about how things were going. They said that things have been well off pace since late 2000. For both businesses. Couple that with a friend of mine who is a salesman at an Audi dealership. He has been telling me all year that things are a good 30% off from the previous year. It is just a normal human reaction to conserve when things seem to be tight. Witness the Japan of the past decade.
