Economy Continues to Slow as Consumer Credit Collapses231 views 2012-10-09 00:53 Tags: consumer spending
“If consumer confidence is low, consumer spending is
low—damaging the U.S.
economy,” explains Lombardi.
Considering consumer credit to be a key indicator of
consumer confidence, Lombardi reports that consumer credit fell to $3.3 billion
in July, the first drop after 10 months of positive data.
Lombardi claims that the decline in consumer credit has
caught the U.S.
economy by surprise.
confidence is in the slumps because the U.S.
economy is in a horrifying state,” says Lombardi, noting that consumers can’t
be blamed, as they are justified in their lack of confidence in the U.S.
“For economic growth, consumer confidence has to increase, and consumers need to feel comfortable while spending,” reasons Lombardi. “Economic growth happens when wealth in an economy is created, and this is clearly not being witnessed here in the U.S. economy.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
was among the first (back in late 2006) to predict that the U.S. economy
would be in a recession by late 2007. The daily e-letter correctly predicted the
crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and
rode the bear market rally from a Dow Jones Industrial Average of 6,440 on
March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.