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Confounded

Wow, Consumer Led Recovery In The Us?

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Consumer led recovery in the US?

http://www.zerohedge.com/article/consumer-...wth-says-enough

A record plunge in consumer credit, and the American middle class has just given the new and improved Obama-endorsed "spend spend spend" recovery and confidence plan the middle finger.

$6.1 billion decline in revolving credit, and a $15.4 billion drop in non revolving credit, on a $4 billion expected decline! June's decline was revised downward to a $15.6 billion reduction in credit.

Someone please spin how a record consumer retrenching is in any way benficial to America's GDP.

Yet TradeBot and HAL9000 have largely priced in this $17 billion miss to consensus.

Consumer%20Credit%20July%20chart%201.jpg

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Consumer led recovery in the US?

http://www.zerohedge.com/article/consumer-...wth-says-enough

A record plunge in consumer credit, and the American middle class has just given the new and improved Obama-endorsed "spend spend spend" recovery and confidence plan the middle finger.

$6.1 billion decline in revolving credit, and a $15.4 billion drop in non revolving credit, on a $4 billion expected decline! June's decline was revised downward to a $15.6 billion reduction in credit.

Someone please spin how a record consumer retrenching is in any way benficial to America's GDP.

Yet TradeBot and HAL9000 have largely priced in this $17 billion miss to consensus.

Consumer%20Credit%20July%20chart%201.jpg

Consumer led spending growth society, Slams on the brakes knowing that the party is over...woohooo "BUY BUY BUY" Yip Yip! It only took 2 years and the government is making up the shortfall...And then some.

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Yes...I've just realised that Gloomberg chart goes back HALF-A-CENTURY!

I checked MoM and YoY % as well, nothing has beaten this so far. Even worse the USA has become more of a consumer economy since about 1970 :o

http://www.federalreserve.gov/releases/g19/hist/

Largest YoY % falls

Jul. 2009

Jun. 2009

May. 2009

Nov. 1991

Oct. 1991

Apr. 2009

Dec. 1991

May. 1992

Apr. 1992

Sep. 1991

Mar. 1992

Jun. 1992

Jan. 1992

Feb. 1992

Aug. 1991

Jul. 1992

Aug. 1975

Mar. 2009

Jun. 1975

Jul. 1975

Jul. 1991

Aug. 1992

Oct. 1958

Aug. 1958

Sep. 1975

Sep. 1992

Edited by Three Pint Princess 2

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Guest The Relaxation Suite
It's the creditless recovery.

What's hard to understand.

Chill. Soon it'll be the recoveryless recovery.

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Next month's Cash for Clunkers will add $10bn so it'll be party time again...this embarrassing little blip will be swept under the carpet.

With all the young men out of work they should be trialling a "Cash for Love Socks" scheme, seeing as they will have so much time on their hands.

Thank you.

Thank you very much.

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Great article confounded, but the meeja say the recession is over. :lol:

Yes quite amazing the propoganda has moved onto examining the crises as a historical event. BBC pushes the idea that it is a distant memory at every opportunity.

Although propoganda is a vital tool in combating this crisis I am afraid they have blown their chance to use it in a meaningful way, they have skipped through the steps of painting a picture of recovery far to soon, the Vail is far too easily lifted even by the most compliant of sheeple.

Edited by Confounded

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Yes quite amazing the propoganda has moved onto examining the crises as a historical event. BBC pushes the idea that it is a distant memory at every opportunity.

Although propoganda is a vital tool in combating this crisis I am afraid they have blow there chance to use it in a meaningful way, they have skipped through the steps of painting a picture of recovery far to soon, the Vail is far too easily lifted even by the most compliant of sheeple.

I agree.

they have cried wolf now too often. Even the daily hate readers know something is very wrong with the economy. The vast majority will never figure it out though, blaming the banks instead of taking half the blame themselves.

there are two definite greedy sides to this debt relationship.

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I checked MoM and YoY % as well, nothing has beaten this so far. Even worse the USA has become more of a consumer economy since about 1970 :o

http://www.federalreserve.gov/releases/g19/hist/

Largest YoY % falls

Jul. 2009

Jun. 2009

May. 2009

Nov. 1991

Oct. 1991

Apr. 2009

Dec. 1991

May. 1992

Apr. 1992

Sep. 1991

Mar. 1992

Jun. 1992

Jan. 1992

Feb. 1992

Aug. 1991

Jul. 1992

Aug. 1975

Mar. 2009

Jun. 1975

Jul. 1975

Jul. 1991

Aug. 1992

Oct. 1958

Aug. 1958

Sep. 1975

Sep. 1992

hell yeah: they all seem to relate to recessions.....prove that constant increase in debt is whats driving growth.

Now, if the proportion of debt to incomes is increasing too, then we may be able to calculate the "wall" where debt becomes unserviceable and the big one happens...I suspect we are close.

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That graph is a hockey stick so it must be made up.

The recovery is just fine, there is no global warming and jesus loves you.

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