Saturday, November 21, 2015

Recovery? "We Never Came Close"

http://www.zerohedge.com/news/2015-11-21/recovery-we-never-came-close
 
Americans have taken on more revolving debt (credit cards basically) since March than they did the previous three years combined. Economists are, as you would expect, nearly ecstatic over the impoverishment. To them, it signals the final capitulation of consumers to that which Janet Yellen has been professing since her term began. But there is a huge problem with that view; if consumers are borrowing, what are they doing with the balances? Instead, this discontinuity can only be consistent where consumers are completely out of options. If there are noticeably fewer goods being shipped here and within here, the US, and borrowing has just exploded at the same exact time then it is rather easy to conclude far more of full recession than recovery.

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