Now Even Lowly Service Sector Jobs Getting Crushed: Consumers Not Spending

It's a new bubble. The banks and debt co.'s floating these new cars loans will go under in about 3 yrs.
Interesting how the time line for bubbles collapsing, is shrinking.
I think it was Dave Ramsey who came up with this "new car bubble" idea. Can't remember where I heard it.
 
Most pundits have described US overconsumption as one of the main reasons behind today's crisis.

An adjustment to those ways looks rather beneficial to the future of the US economy and it's people if you believe the first to be true ofcourse there is some pain that comes along with it.
 
Over the longer term, imbalances (if allowed to) revert back to a more stable mean. If history is any guide, Americans will spend less and use the money to pay off debt and put some money in the bank. According to Gallup consumer spending has basically been grinding sideways since Jan/Feb of this year and hasn't gone anywhere. And that is AFTER all those "stimulus" government transfer payments.

This is a process that plays out over decades rather than a quarter or two. The consumer debt load is that big. Higher taxes will likely make this take even longer as they take a cut out of disposable income.

On the retail investment side I'd see less speculation for capital gains, more income oriented investing. Government & corporate bonds, preferred shares, conservative REITs/utilities, working class apartment building real estate rather than glitzy penthouses with zero rental yield.
 
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