I now find myself agreeing that a slowdown is in the cards. I did not agree with the whole MEW-consumer slowdown-etcetc bottom-up recession scenario, but this massive hit to the confidence of the credit markets could indeed squeeze the economy from the top down, especially if the Fed continues to sit on the sidelines. Consumer confidence hit a record high in July; I’d be willing to wager it will take a record 1 month drop from July to August.
