And the consumers will start buying with... what?
Wages are down. As the above charts indicate, consumers are de-leveraging, ie, they’re not increasing their credit.
So with a downturn in wages, consumers not taking on more credit (and credit being increasingly difficult to come by), what will consumers spend? Quatloos?
Look, I’m not saying we’ve go no problems, and there is NO freakin’ way that I’m a fan of Obamanomics. That said, the 90% of people that have jobs are still spending money. My point was and is that productivity goes up at this point in the economic cycle. And we’ve been through this cycle a bunch of times. Can we double dip or crash and burn? Yes, we can. But right now, unemployment is up and so is productivity. It’s a NON STORY that the MSM are trying to turn into a story.