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Recall that last year many banks stopped foreclosures. It is now “catch up” time.
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It will be interesting to see what happens with the retail sector that
has posted some gains recently.
Possibly due to defautlers living rent-free...and thus spending
their rent money on buying goodies.
Once the banks finally enforce the foreclosure after waiting up to
a year...that might spell another dip.
Definite possibility! I personally don't view the spending data as anything more than an insignificant blip on the screen. Correspondingly, the savings rate dropped. Until employment increases, there will be perturbations in the data and economic trends will be negative or flat at best.
Remember the old movie “Americathon” where a bankrupt USA holds a tv telethon begging for money? people were living in their cars which were made over as homes.