Today the market was excited because wages increased only 2.3% in the past quarter. That was regarded as a very positive signal that feds will not raise rates anymore.

Wake up! Who in his clear mind expects feds to increase rates in the next 5 years?

What I see is that consumers, who are spending more than earning for a while already, will have to spend a little bit less. This add-up well with retailers price wars, Wall-Mart problems and unexpected raise with subprime mortgages defaults.

And falling productivity growth makes this even worse.

I spend much less than I earn. Do you?

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