Yes....Sales are Evaporating....
U.S. housing starts down 28% in past year.....U.S. Sept. housing completions record-low 693,000
Precision Castparts Corp. sales fell to $1.3 billion from $1.8 billion.
Headline: Texas Instruments profit falls 4.4%, but sales up Reality: Revenue fell to $2.9 billion from $3.4 billion.
Illinois Tool Works revenue dropped to $3.58 billion from $4.64 billion.
Caterpillar sales came in at $7.3 billion, vs. $13 billion in last year's third quarter.
Whether its cities, counties, states, businesses and families....it appeaers now many are seeing revenues decline 20-40%....the only reason health care and food is remaining relatively stable is because Government is running a $2 Trillion dollar deficit that the world knows can't be sustained.
The problem is America now is burdened with $50 Trillion dollars of debt versus only $5 Trillion in 1980. That debt is NOW the primary asset and income source of our nation. If that debt is not performing, assets are crashing and income is evaporating. Now with revenues no longer sufficient to sustain servicing much of the debt, we are seeing record defaults, massive deficits and unprecedented revenue declines in a short period of time.
Going forward, based on much lower revenues, as savings runs out, more and more debt will default causing a contraction our nation has never seen before. The problem is much of our current savings is held in debt based assets...so as the debt defaults, so does the savings. And as savings is depleted, so is banks ability to lend.......
Now that government is laying off.......and revenues pretty much generally are down 20-40%(save deficit spending), it seems clear that with unemployment already at 20%, we could easily see 40-60% unemployment ahead.
None of this is fun to analyze...just the facts and the diagnosis based on the patient presented. If you own real estate, save a change in policy, it could very likely decrease in value 50% or more from current valuations as fewer and fewer will be able to pay rent or service mortgages.
As stated before, if we don't change current policy, you should expect much of America to look like Detroit in the not too distant future. It is not the end of the world, just the end of the world as you know it.