HOW CAN THERE BE A RECOVERY WHEN NOBODY IS BUYING A DAMNED THING

Sorry that I haven't written anything today (that may not be a bad thing) but I've just sort of been kicking back wondering when this really scary movie is going to climax. We have to be getting close; I don't know how much more suspense I can stand.

"*U.S. JULY CONSUMER CREDIT WAS FORECAST TO DROP BY $4 BILLION
*U.S. JULY CREDIT CARD, OTHER REVOLVING DEBT FALLS $6.1 BLN
*U.S. JULY NON-REVOLVING BORROWING FALLS RECORD $15.4 BILLION
*U.S. JUNE CREDIT FALLS $15.5 BLN, REVISED FROM $10.3 BLN DROP
*U.S. JULY CONSUMER CREDIT FALLS RECORD $21.6 BILLION, FED SAYS

Forget the so-called "recovery" given these sorts of numbers.

Consumers are unable and unwilling to borrow.

The inevitable contraction that is necessary to put the financial system back into balance is happening - whether The Fed wants it to or not.

This is a roughly 0.8% contraction in one month.

This contraction has to happen - it is on-balance a good thing that it is, in that only by clearing the debt load can be stabilize our economy.

However for those who are looking for evidence of a significant rebound in economic activity you're going to be disappointed!

The Fed does not have the updated tables yet on their data program; when they do I will re-run my previous credit graphs and post them.

They're ugly."

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