CNBC reports on Sunday, September 13th, that consumer spending could boost markets. This is hard to understand! Across the nation credit limits on credit cards are getting slashed, interest rates are rising on consumer credit cards, and monthly minimum payments for many are also rising. (And as I write this blog, the S&P futures are falling like a flying monkey).
How can the consumer keep the market going when the consumer is getting the triple squeeze? CNBC reported a few days ago that the savings rate was going up. This doesn't support their own report for consumer spending. In addition to these items, stores such as Dollar General are reporting triple digit growth in sales. There are more higher value cars seen in the parking lots of Wal-Mart, Dollar General, Family Dollar, etc. than seen in the past.