Consumer Confidence sank to a new low according to The RBC Cash Index. The reading was 48.5 versus last months low of 56.3 and the lowest reading since the index began in 2002.
Debt is out of this world. 3 and 4% Teaser Loans are resetting at 7 and 8%. Home equity rates are much higher than when many took them out, even after recent rate cuts. Credit Card debt is in the stratosphere. The total debt balance has doubled or tripled once you factor upsizing and home equity extraction. The cost for health insurance has gone up 200% to 300% for many factoring out of pocket costs and copays. Property Taxes have doubled. Gasoline has doubled. The price of almost everything has risen .
Wages? Just ask airline pilots, ground workers, flight attendants, manufacturing workers, mortgage brokers, and RE agents what has happened to their wages in the past six years. Now it is starting to hit the service sector as restaurant and retail sales are showing dramatic slowing. With slowing sales layoffs can be expected. Macy's just released over 2000.
How can Johnny and Jill pay their credit cards and mortgage obligations and still feed their family? It's getting harder and harder everyday. For many they can't and debt was their income supplement. Now that debt is tightening, what is Johnny and Jill going to do?
Construction and the Service Sector accounted for all of the job growth since the last recession. Many of the lost construction jobs were never documented due to many being independent contractors. Now that the service sector is slowing, the documented job losses could be huge.
Now even Cisco says January is slowing. If Cisco is seeing January weakness, what are the other tech companies experiencing?
Construction, Service, Tech, Retail, Restaurants...................
Poor jobs outlook, rising costs, stagnant wages.........its amazing the news is as good as it is. Captain, what was that bump a few minutes ago?