DaveJ

Will the Sub-Prime Debacle Hurt Retail Stocks?

Of course it will. This is a no-brainer. If banks will no longer lend 100% LTV, that means they will require people to actually have down payments. This requires savings money just like our parents did in the old days. This requires less consumption.

Think about the simplicty of this argument. How can it be wrong? Things that are unsustainable always have to stop. US consumption has been unsustainable since they were spending more than they were making. QED