dm investor: I agree completely. If I remember correctly, I read an article that says that consumer spending accounts for nearly 70% of the economy. Wow. If so, and since housing and consumer spending are inextricably linked by the availability of easy cash and credit, then the resultant “turning off of the spigot” is going to create one helluva hole.
A friend of mine went furniture shopping in this mall off of the 215 in Murrieta. He said that virtually all of the stores were deserted and he nearly got assaulted by an eager salesperson in the Wickes store. Every one of the stores was in “Let’s Make A Deal” mode and he claims he cut a deal on a living room set that was about 40% off list. Again, anecdotal, but, if true, it is telling.
I have another friend in banking who is getting inundated on a daily basis with email notifications from his bank and other banks about repo vehicles up for sale.
