Thursday, July 15, 2010

Further evidence that we are already in another bubble: U.S. Retail Sales

Why is the market still relatively so high when, following the disappearance of the temporary boost to incomes provided by government "stimulus packages", wages and asset income are low, revolving consumer credit is flat if not down, consumer confidence is pretty absent, and unemployment is up?

Is this not evidence of over-liquidity producing "animal spirits" (i.e. a bubble)?

For those who like to know such things, nominal retail sales fell for the second consecutive month in June, down 0.5% compared to the same month last year. This followed a 1.1% correction in May. Core retail sales—sales (excluding gasoline, building supplies and autos) remained more of less flat, with a negligible 0.2% gain, after being revised to marginally negative in May. Sphere: Related Content

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