Your Stock Market Nightmare Isn't Over:
7 Reasons Why the Market is Not Going up Anytime Soon
PLUS, 3 Trades to Make Money From the Market Now
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Reason #5: The Consumer Has Stopped Spending
The consumer spending component of the economy was 70% of GDP but it's shrinking fast and is not coming back to former levels -- maybe ever.
Unemployment and fear of unemployment are killing spending. I believe we will see double-digit unemployment before we see 5% again. as Another drag on spending is a lack of credit as credit cards get pulled back, home equity lines are withdrawn and people realize that buying the next piece of breakable stuff made in China may not be the wisest thing to do with their money right now.
At the end of last year the U.S. savings rate went up for the first time since 1952, and saving money does not repair economic damage -- right now, it aggravates that damage. How much damage? Well, the canary in the coal mine for the economy is business capital spending and the canary that sings first is in this sector…
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