The ‘recovery summer’ that wasn’t continues ~ retail sales dip for second month as consumers continue to vote NO on Obamanomics, refusing to spend
The problem is we American consumers stopped spending but the world is NOT increasing consumption, it is continuing to export to us (and it made clear at the G20 that will continue so much for Obama;s vaunted charisma leading the world to new frontiers, lol).
–The dead cat has left the building: despite a record 9.0% plunge in building material sales for May, the category failed to receive the typical post-plunge rebound in June. We view the building materials and accompanying furniture sales drops as reflective of weak housing market demand, and ultimately it was the lack of a dead cat bounce in these categories that caused core sales to fall short of expectations. Building materials sales declines of an additional 1.0% point towards continued weakness in construction spending, as residential improvement projects represent about 15% of all US construction activity. –Guy LeBas, Janney Montgomery Scott
And of course there are no American jobs, that pesky housing market is continuing to drop to new lows and small business is out for the count. The MNCs can continue to cut costs for a while but the inventory build is over.
The high end is moving their income into 2010 to avoid the coming Taxapocolypse in ’11 which will make the back half of ’10 look much better than it is, and will also see the tide go out in ’11 and reveal the naked truth~ there is no recovery and there will not be one until we turnover Congress AND the Presidency.
We can stop the bleeding if the GOP takes Congress in November, but we will have to sit tight, preserve capital and wait it out til ’12 to get the American economic engine running again under a POTUS who is not actively trying to LOWER the American standard of living. VOTE!
…Retail spending dropped 0.5 percent in June, the Commerce Department reported Wednesday. That followed a 1.1 percent fall in May. Excluding autos, spending was down 0.1 percent in June. …
…Americans are spending less and that could threaten the pace of the recovery. Consumer spending accounts for 70 percent of economic activity. But consumers have held back because of high unemployment and other signs that have dampened their confidence, such as the volatile stock market and a struggling housing market.
The June decline in retail sales was larger than the 0.2 percent fall that economists had expected. …
ps Oil inventories PLUNGED 5 MBBPS forecast was a drawdown of 1.something MBBS–and BP isn’t testing the cap shutoff~ WASS!! Take that summer RV vacation with the family now before gas goes up~yeah the markets are up 700 points on the Dow past few days, whee! gotta be Nukkin Futs to play this market IMO it is running on air, no volume and computerized trades, there is no THERE there, just like Obama. The souffle has fallen!!