Retail profits…joke.
By Daniel at 12 September, 2009, 5:48 pm
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Stocks go up on profits-no brainer and profits come from consumer buying of goods, another no brainer as consumers are 70% of the US economy. No argument there.
Personal spending is dropping…the figures were down in four of the last six quarters – something that has never happened before, since they began keeping records in 1947. And the level of consumer spending is down 33% from a year ago – with discretionary spending now down to a level it hasn’t seen in 50 years.
We have as consumers $25 Trillion MORE of outstanding debt that needs resolution so our spending and borrowing days were over in 2007 and will not return for a decade!
The World Economic Forum has taken the United States down from the number one position. America is no longer the world’s ‘most competitive’ economy. That title goes to Switzerland.
Meanwhile, the US banking system is rated #109 in the world – just below Tanzania.
Grim numbers and the feds will inflate their way out of debt rather than pay it off. And this will push consumer prices higher at a time when consumers are not spending…you cannot stimulate consumption based on inflating away debt.
Retail profits…joke. The profits so far are on streamlining-shrinking and layoff’s not consumption.
Invest at your own dire risk.
OldYeller
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