#11 The growth of consumer spending in the United States has just plummeted to multi-year lows.
Obama's "part time job recovery" comes home to roost. You can't expect people making $8-$10 an hour to spend on much more than rent, utilities, and food.
If there's anything left over, it isn't going for cars, trucks, and high tech (except phones).
The middle class is also working hard to make ends meet.
The upper middle and upper can spend only so much....not in the numbers to really move an economy.
So, lying unemployment will rock this boat.
If there's anything left over, it isn't going for cars, trucks, and high tech (except phones). I read recently that besides mortgage debt, 80% of all debt owed by consumers is automobile debt.
That is a staggering number.
People are taking loans for 72 months, on cars and trucks!
Some people are shelling out close to $80K for a new truck. The average price of even your "turtle" look alike clone car is over $30K.
The auto industry has ramped up production, but the cars are not selling. They currently have massive quantities of unsold inventory.