US auto sales are still 27 per cent below pre-recession levels and US housing sales last month were the second lowest on record. And yet the smallest uptick is presently seized upon as a signal that a recovery has arrived.
In truth this is a depression and both US auto and housing sales seem locked in a deep slump. The traction to drag the US economy out of this depression just is not happening. Printing money is pumping up the stock market, not the real economy.
US consumer rules
The US consumer is 70 per cent of the national GDP and these guys just are not borrowing and spending as they used to do. How can they? They still have the debts of the boom to repay, and are saving because they are rightly fearful about the future outlook.
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