They are calling us “schizophrenic.” The American consumer has officially gone off the deep end and the passive aggressive signs of recession are starting to show like small cracks in the pavement.

We’ve been deep in the trenches of the “Great Recession” for a few years now, coming off several years where many families were driving Mercedes Benz SUVs and parking them in their mini mansion garage. These were also the days when picking up a Starbucks cuppa java and the newest generation iPod was just another day at the mall.

According to a recent article in MSNBC, Americans have developed two personalities—one that acknowledges how deep we are in this recession and the other personality that just simply doesn’t care and continues to spend money on lavish items while cutting back on small things such as using generic shampoo instead of name brand.

For example, reporter Devin Leonard spoke to one woman at a Las Vegas shopping mall who said that she’s cut back on eating out and shopping and that she even doesn’t do many “full on” spa days anymore. However, as she discuss how she was cutting back, she added that she and her husband were actually on a vacation in Vegas and were treating themselves by staying at the Bellagio Hotel.

Another individual Leonard interviewed said, "I don't see it (the economy) getting any better. I mean, I need a new car, but I don't plan on getting one anytime soon." However, she adds that she recently purchased a plane ticket for a jaunt to New York City where she is staying at a posh Times Square Hotel.

Consumers seem to have gotten themselves into a situation that is further hurting them financially. Some people feel so miserable about the economy’s nosedive that they try to remedy the situation with “treats” and “small luxuries.” Others contend that they simply aren’t ready to give up the way of life they grew accustomed to before the plunge and “need” their $5 Starbucks every morning.

The evidence is here in black and white: Apple’s net income increased 94% last quarter and Starbucks saw a 61% rise. Mercedes Benz is reporting a record sales year, along with Lexus and BMW.

Because the housing market is one of the key players to bringing the economy back into the black, it appears that many consumers are dropping cash on flat screen TVs and trips instead of banking extra money for a down payment on a home.

Amazingly, scraping together cash for a down payment appears to be a huge roadblock for many buyers, yet earnings income and reports from the street demonstrate that Americans are still spending money on big ticket items. It appears that consumers are nickel and diming themselves out of home ownership, perhaps without knowing it.

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Source: MSNBC