June 30, 2007

You take away the housing bubble and refi ATM, you take away discretionary retail sales


PaperMoney nails it.

Picture is worth 1000 words.


10 comments:

Anonymous said...

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Textbook

Anonymous said...

Is that a picture of a cliff?

Econ professor said...

I have NEVER in all my years seen things go this bad this fast. This is going to re-write the textbooks. Stock up on ammo and food.

Guy Daley said...

Only tree stumps can ignore a graph like this.

This means recession and stock markets plunging. How long TPTB can stave off the plunging is the $24,000 question.

Recession means a lot of unemployment, HOWEVER, if we didn't have 20 million illegals a lot of that pain could be avoided. When housing prices drop, a $10 an hour job will be coveted by Americans instead of being considered "slave labor" like so many on this blog today.

A two income family earning $10 an hour each could probably afford an $80K home with a normal down payment. In Michigan right now you can buy a LOT of home for $80K. Its on Craigslist right now.

Anonymous said...

Laura Vella said: Last night on the bay area local news channels, the city of El Cerrito mandated all shop owners to install cameras outside their business as theft prevention. El Cerrito is a nice, clean, smaller city located right next door to the city of Richmond which has a huge crime problem. Believe me, all the police agencies know what is coming. Eventually, all the bay area police departments will mandate cameras on all businesses before things get worse.

For some time now, the Oakland Police Department has placed a huge banner on the outside of their building facing interstate 880 advertising for police officers. Theft and larson will be on a grand scale in the near future, can't blame them for trying to prepare ahead of time.

A poster here awhile ago said CA prisons are gearing up for an explosion in crime. I went on-line to the State of California jobs website recently and could not believe how many opening for prision faculty were listed. It's a real eye opener.

I'm not a chicken little by any means, but admit it's probably a good idea to have extra resources on hand, just in case of emergency.

K.W. - Southern Ca. said...

Actually, if people had read there basic Econ 101 tectbooks, they would see this is a very logical outcome.

Basic supply and demand ... you know it better than many.

Econ professor said...
I have NEVER in all my years seen things go this bad this fast. This is going to re-write the textbooks. Stock up on ammo and food.

Anonymous said...

no wonder the aisles were so clear in walmart today here in lovely baltimore.

Macaca

Anonymous said...

Where did this graph come from I would be interested in researching it more? It is interesting since I went to the mall the other day and it was so empty they couldn't even be clearing the light bill. Much less be paying employees and lease payments. However I feel compfortable the economy will pick up soon because chimpy said so!!!

sequoia512

retsinas fool said...

Harvard professor Nick Retsinas says everything would be solved if employers double the wages of their employees. No wonder he is a professor. So smart.

Anonymous said...

Best Buy
Circuit city
Macy's
A&F

They're all going down now that homedebtors have overdrawn from their housing ATM