HOWARD DAVIDOWITZ: Consumers Are In TERRIBLE Shape...And It's Going To Get Worse!

Business Insider ^ | Dec. 13, 2011 | Howard Davidowitz

[george76]

In his own inimitable style, Davidowitz explains why the consumer is in "terrible shape" and why "it's going to get worse," citing the following:

Crushing Debt Load: Consumer debt is 117% of disposable income.

Help Not Wanted: Even November's "strong" report included more people dropping out of the labor pool (315,000) vs. those who found work (278,000), according to the Labor Department's household survey.

Reverse Wealth Effect: Household net worth fell 4% in the third quarter, a drop of $2.4 trillion, according to the Fed. That's the biggest drop since 2008 and would be hard to overcome even if wages were rising sharply, which they're most certainly not.

Housing Bust Rolls On:

[dragnet2]

Oh, there are problems aplenty to be sure, much like in 1979

Uh no Larry, the problems we have today, at every level, make 1979 seem a walk in the park on a sunny spring day. Like I said, you should be working for Obama. He's going to need all the happy talk he can get, in an attempt to minimize this flipping disaster.

[DeaconRed]

ABC early morning news said this morning that the economy was back.
Unemployment in South Dakota was 3%.