I’m just a whacko nutjob so take what I say with a grain of salt …
Maybe, maybe not.
I think about our economic predicament in terms of consumer spending, upon which about 70% of our GDP rests.
So I ask myself hypothetical common sense question: “How much will typical American reduce their spending? 5%? 10%? 20%? 30%?”
I think it is very possible Americans will reduce their spending on average by over 15%, maybe even over 20%. So clearly we are looking at some quarters ahead with GDP declining.
Sales of cars and light trucks fell 27% last month, reached a 15-year low, according to Autodata Corp. Even Toyota was down 32%.
If that data is at all representative of how consumers are cutting back spending, we’ve got a severe recession or depression coming our way.
