Spend Matters Afternoon Coffee

A paradox.
Consumer Spending: The Chicken or the Egg -- The suggestion ... is that the economy is growing slowly because consumers aren't spending money. But how do we know it's not the reverse: that consumers are spending less because the economy isn't doing well. As a teacher, I can tell you that it's almost impossible to get students to understand that the first statement isn't obviously true.

Chinese knock-offs...in China.
Chinese Upset Over Counterfeit Furniture -- DaVinci is the place to go for Versace sofas, sumptuous Fendi Casa calf-skin couches or stylish chaise lounges stamped Made in Italy. A DaVinci bedroom set can sell for $100,000. That's why it set off a national consumer scandal when one of China's biggest state-run media outlets reported last week that it had discovered a tawdry truth: some of DaVinci's imported Italian furniture, the report said, is actually produced at a factory in southern China.

Clashing B2B/B2C models with Netflix...
How the movie studios caused Netflix's problems -- Netflix has always been about convenience, and a flat monthly fee, buried on your credit card statement somewhere, is certainly more convenient than paying for movies one at a time, as you have to do on say iTunes. But just because Netflix charges consumers on a flat-monthly-fee basis doesn't mean that's the best way for it to make deals with movie studios. Up until now, it seems, Netflix has paid the studios a flat monthly fee, linked to the number of subscribers it has with access to their content. And when that got too expensive, it wound up cutting off streaming from its DVD subscribers to save on its own library-subscription costs.

Un-American American?
American Leans Toward Airbus -- American currently flies 737s and only Boeing models. Since 1996, it has had an agreement with Boeing to buy only its planes. American flies no Airbus planes, and a deal with the European plane maker could end its exclusivity pact with Boeing, said people familiar with terms of the deal.

- Sheena Moore

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