Tuesday, October 18, 2011 – 10:45 a.m.
Wall Street seem to be cheering the increase in consumer debt last month as a sign that there’s no double-dip recession.
What the hell!
The position seems odd since it’s a fact the debt load of consumers and industrialized nations has placed the global financial system under extreme strain.
The U.S. has essentially doubled its own debt from $8 trillion to $16 trillion in just four short years and there’s no end in sight to the excess deficit spending.
A Greece default is inevitable and others will follow as countries move to fend for themselves.
The “forget about the other guy” mentality will eventually prevail with other countries. And when it does, standby. Very few want to acknowledge the 800-pound gorilla in the room and it’s become obvious.
What? The debt is just going to disappear?
I don’t think so.
Many corporations are raking in the dough earnings wise primarily because they cut payrolls and refuse to expand. In other words they’re running lean.
Don’t expect anything to change as consumers continue to restrain their spending because they don’t have any extra money.
Year over year comparisons won’t look so rosy shortly.