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?