More thoughts on April spending and consumer credit
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Submitted by Jakebnto on Fri, 05/11/2007 - 2:17pm
Kevin Drum points out that "....Retail sales in April were down 2.4%, "the most wretched year-over-year showing by major retailers since the International Council of Shopping Centers began tracking the data in 1970," according to the LA Times."
More data suggestive that the increase in consumer credit in April is a result of paying taxes with a credit card, not underlying strength in the economy.
At least, the data is suggestive to ME.
Jake
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Paying taxes with a credit card...
... because, presumably, otherwise they lose the house.
Fortunately, "the economy" is doing just fine, and there's the prospect of even better times ahead! Oh, wait...
No authoritarians were tortured in the writing of this post.
in comments at Kevin's place
howard speculates that $3 gas is the driver behind the two pieces of data. I don't know if it is or not, but if so, we should see another record quarter for big oil.
Jake
Sad to say, it’s not bad
Sad to say, it's not bad enough yet. The Fed won't loosen up until they see clearer signs of consumer distress. Fine by me -- empirically, the press tends to grow balls in a recession. It's the last necessary nail in the coffin of the GOP's rep.