All of which makes me say: “No, really?! Duuuuuuh.”
Consumer spending used to account for 70% of the GDP. Consumers are now seeing their wages, home equity and stock-based retirement plans fall at the same time that consumer credit reduced or withdrawn.
Hence my assertion that there is no sustainable turn-around in the economy until we see at least *some* of these factors turn around. None of them are as of yet.
Quite so. And as we begin to see the modus of this administration as being bringing the evil, greedy wealthy down to the level of the poor and downtrodden out of populist (and that’s really the wrong word, it’s “get whitey”) spite, the result will surely be a lowered standard of living for everyone other than a few priveleged elite. Of course, that will be the snide counter from the left, that it was the GOP who fostered the priveleged elite, rich bastards that they are. Or were. It’s remarkable and will be telling to see it play out. With so much demand “pulled forward” via very low interest rates and super easy credit during the last bubble, it’s very hard to see how a robust recovery can occur, now that credit is tougher and business conditions have turned prohibitive. Think: Car sales down from 17 MM to 11-12 MM.