This is what makes analyzing the economy difficult. Today the Commerce Department announced that consumer spending rose 0.3% in February while at the same time personal incomes remained unchanged. Hats off to the brain dead American consumer who does not let recessions, depressions, 17% unemployment (U-6 number), rising energy and food prices deter them from shopping until they drop. This makes no logical sense. The only explanation I have for this is that people stop paying their mortgages and use this "extra money" to go crazy at Gucci, Saks, Tiffany's. In many cases they can spend $2000-4000 a month which would have been foolishly wasted on their underwater mortgage. I have read that you can stay in your home for up to 15 months without making a payment so it makes sense. Defaulting on your mortgage is the new economic stimulus. Only in America!!!
Black Swan Insights
Black Swan Insights
