Friday, August 7, 2009

Credit Card Debt Down for the 5th Month in a Row

Certainly not a good indicator for the retail sales report out next Thursday:

Credit card use is falling, credit card defaults are hitting new records every month - we've been wondering how the back-to-school sales season has been doing. Given that our GDP since 2000 has been 70% based on consumption, I'd hazard a high probability guess that retail sales are plummeting.

With the Government subsidization of auto purchases going on right now and just tripled in total size, I would expect that auto sales this fall will plunge as well.

I hope everyone is taking advantage of this rally in the stock market and getting the heck out. I also hope everyone is buying as much gold and silver as they can before the real fireworks start in the precious metals sector.

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