The New Path -How the Crisis Is Changing You

Money Magazine

Context featured in the May issue of Money magazine on an article about the economy. "We think what is happening now will be transformative," says Robbie Blinkoff, management director at Context-Based Research Group, which studies consumer behavior. "Consumers are surrounded by a lot of stuff that has no meaning, and they see that it hasn't made them happy," he says. Blinkoff believes we will also interact differently with financial providers as a result. "We're beginning to realize that our financial institutions enabled us to live beyond our means," he says. As consumers come to grips with that, they will start paying much closer attention to the details in their mortgage and other financial documents. They will also differentiate good borrowing (for, say, education) from bad borrowing (for a new Lexus or a Kate Spade handbag). They may still buy designer clothes and luxury cars, Blinkoff says, but only if they can do it without resorting to plastic or a second mortgage on the house.