igggy

Consumer Credit Continues to Plunge

Cetin, I was worried you wouldn't post a reply. It's not the same when you don't say the rally will keep going.

Where do you think americans will get money to spend by the end of 2009?
Will wages go up?
or perhaps unemployment will go down by half?
or maybe house values suddenly go up?
or credit card companies will loosen their standards again?
Which one is it?

Certainly, kind uncle Ben will print more money for everyone to share but even then, most people will choose to pay down their debt or save for retirement give the recent market returns. Don't you think?

Until recently, loose credit and home equity supported high spending. At this point, uncle Ben is trying to pick up the 'slack'. Not sure if that will work.

On May 08 01:09 PM Cetin Hakimoglu wrote:

> But this will only be temporary. The savings rate will go negative
> by the end of 2009, and things will return to how they were in the
> last bull market. This is because Americans have short memories and
> are programed to spend.