Fall in consumer spending compared to personal spending manifests debt service difficulty for families – an early signal of deflation and depression in the economy
Joe Weinman
Apr. 29, 2007

The gas prices are rising, home prices are falling, credit card rates are ballooning and in the middle of all that today’s data suggest consumer spending has started lagging behind the income. Fall in consumer spending compared to personal spending manifests debt service difficulty for families. This is an early signal of deflation and depression in the economy. The stock markets across the world are charged and in the state of artificial liquidity driven blow off.

Falling consumer sentiment can be devastating for the economy. The businesses are convinced it is time put a stop in the spending. Falling business and consumer spending will create more than 3% negative GDP by middle of 2008. Federal Reserve will lower the rates back 1% and perhaps lower by 2012 confirming deflation.

Fall in consumer spending compared to personal spending manifests debt service difficulty for families – an early signal of deflation and depression in the economy
Joe Weinman
Falling consumer sentiment can be devastating for the economy. The businesses are convinced it is time put a stop in the spending. Falling business and consumer spending will create more than 3% negative GDP by middle of 2008.
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The NAPM (National Association of Purchasing Management) Chicago index collapsed signaling deflation in control
Sam Adelton
The index registered 61 in March 2007. The reading for this month fell apart. It is another sign mega deflation and massive irreversible slowdown in the economy.
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Construction spending stays almost flat but demand for new homes increasing rapidly
Peter Oberois
The Federal Reserve is convinced that the real estate markets will rebound all across the country. The construction spending stays almost flat but demand for new homes increasing rapidly.
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Mortgage brokers who lied to the public while selling mortgages are looking for safe heavens abroad
Fred Day
Many mortgage brokers who sold mortgages by lying to public are scared now. People can easily take revenge on them. State and Federal regulatory authorities can take action on them as foreclosures and mortgage defaults skyrocket.
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Why is gold so weak if dollar is crashing on the down side – it is just a conformation of deflation
Sam Adelton
Many of those who cannot look beyond the closing numbers in the stock market every day are questioning the deflation theory. When I wrote about Mortgage scams in 2005 and imminent real estate collapse, people laughed at it. Look what happened.
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Credit card companies raising rates without notice – what is the effect on the economy, stocks and bonds
Peter Oberois
How high can Dow go? As much as the hedge funds and their billion will take it to. But sooner or later the deflation will take it down where it belongs – far bellow 7000.
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Can Gold make it to $800?
Peter Oberois
The deflation is not that great for gold. It can create the damp in the gold market. If dollar collapses, however, gold will rise far above $800 an oz.
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