| Author | Message | ||
     Ashton Comedian Username: Ashton Post Number: 1700 Registered: 05-2008 Posted From: 67.159.45.53 Rating: N/A |
http://finance.yahoo.com/tech-ticker/article/304172/Is-That- Finally-It-for-the-Sucker%27s-Rally?tickers=%5Edji,%5Egspc&s ec=topStories&pos=9&asset=&ccode= By last week, most pundits were convinced: The economy was headed for a v-shaped recovery, and the market was already 50% into a great new bull market. Anything's possible. But both theories still seem unlikely. First, we have yet to hear a persuasive explanation for how consumer spending is suddenly going to start growing at 3% a year again, and consumer spending still accounts for a staggering 70% of the economy. More likely, in our opinion, consumers will continue to shed debt and boost savings, with consumer spending ultimately settling back to its usual 65% contribution to the economy. This deleveraging process will likely act as a drag on economic growth. (Below, Ned Davis charts household debt to GDP. Note where we still are relative to the long-term average). Ok Guys, No more suckers rally from here.....This is End of the rally... Welcome to the Real depression 2.0 Oy Oy |
