Circuit city going out of business - [consumer tech market]

The consumer tech industry's response to the US government's stimulus package has been cautiously optimistic, reports E&T. The US is the largest consumer electronics market and the bellwether for how any economic stimulus package can motivate high street or more appropriately, shopping mall spending. The widespread belief has been that the US economy is pulled along by spending. Government push is bad, or at least that has been the perception post-Ronald Reagan. In this context, many analysts remain reticent about specifically saying just how much the stimulus has to do with improved sentiment on both sides of retailing. This also takes greater account of further trickledown consumer spending that it is hoped will begin as spending on public infrastructure projects (such as broadband and smart grids) creates and preserves jobs. The withholding boost aside, most stimulus cash is still to be allocated by various federal agencies. That may not benefit consumer electronics until later in 2010. However, if this is a lingering recession, the second wave may come at the right time.