A Disaster Waiting To Happen: Retail Sales (Ex Autos) Still Weak, The Reflation Trade Rolls Over, Rental Units Collapse, Consumers Run Out of Spending Money…

Following June’s huge surprise jumps in Housing Starts (revised lower) and Building Permits (revised notably higher), July saw both starts and permits plunge (-4.8% and -4.1% respectively) dramatically missing expectations. The majority of the plunge is driven by multi-family starts crashing 35.2% YoY to its lowest since Sept 2016.
Permits’ 7.4% June surge was revised up to a 9.2% spike (the biggest since Nov 2015) before July’s plunge.

Multi-Family Starts plunged to the lowest levels since September 2016…


  • The headline U.S. stock market remains within striking distance of new all-time highs.
  • Yet a correction is already underway under the market surface.
  • Stocks currently have a “big” problem.

Many investors have been contemplating the potential for a U.S. stock market correction starting some time over the next couple of months after what has been a remarkable year to date. Whether such a pullback on the headline benchmarks actually comes to pass remains to be seen. But in many respects, a correction in U.S. stocks has already been underway for nearly a month now.


American consumers are spending more money on goods. That’s making people on Wall Street happy because such purchases account for about 70 percent of the U.S. economy.

But before anyone gets too enthusiastic about the buying spree, it’s becoming increasingly clear that consumers are running out of steam to carry the load of U.S. economic growth.

On Tuesday, the Commerce Department reported that U.S. consumers boosted their July retail spending by the most this year. Analysts cheered, with some seeing less chance of a recession. Yet after a closer look, it appears that consumers are straining their finances to buy more makeup, baseball bats, couches and home-improvement supplies.

For one, they’re packing on more debt. Households increased their borrowing over the past year at the fastest pace of the economic expansion, according to data published Tuesday by the Federal Reserve Bank of New York. They now have the greatest amount of debt on record, at $12.8 trillion, a $552 billion increase from a year ago.

ECB Weakens Italy Doom Loop By Bending Bond Rules

China’s debt boom could lead to financial crisis, IMF warns

Telegraph.co.uk22 hours ago
China’s economy is reliant on too much debt and the enormous boom in credit … But in the years ahead, risks will grow as China’s extraordinary debt bubble …

BOJ could overtake ECB as world’s largest central bank

Nikkei Asian Review2 hours ago
TOKYO — The Bank of Japan’s balance sheet keeps swelling, with the central bank doggedly continuing to purchase large amounts of Japanese government …

Sovereign debt has a pretty poor record

Financial Times15 hours ago
In fact, the history of sovereign debt is pretty poor. Carmen Reinhart and Kenneth Rogoff, in This Time is Different, count over the past two centuries 250 defaults …

One major way US credit card debt is getting worse

MarketWatch20 hours ago
Total household debt now amounts to $12.84 trillion in the second quarter of 2017, up 0.9% since the first quarter. Mortgage debt increased 0.7% and auto debt …

Brazil softens budget deficit goals through 2020

Reuters13 hours ago

Brazil’s government set a new primary deficit target for this year and next of 159 billion reais ($49.7 billion), up from 139 billion reais this year and 129 billion ..

How CPS new CPS budget will affect local schools

Hyde Park Herald2 hours ago
Funds from the state would also go toward current and past due pension …. CPS projects that the deficit for the school to be at nearly $40,000 for this year.

PIMCO Alerts Investors on Stocks, Says “Change Is Coming”

Aug 16 – For the first time in years, PIMCO is suggesting caution on the markets. With over a trillion of assets under management and millions of investors worldwide, FS Insider spoke with Anmol Sinha, a vice president and strategist at PIMCO’s…


2 thoughts on “A Disaster Waiting To Happen: Retail Sales (Ex Autos) Still Weak, The Reflation Trade Rolls Over, Rental Units Collapse, Consumers Run Out of Spending Money…

  1. We’re boycotting the Jewish mafia banks, “the fed”. No more bank loans, no more credit cards, no more holiday spending, just staunch opposition to Jewish communism in the US:
    “Deficit spending is simply a scheme for the confiscation of wealth.” Alan Greenspan
    We like our wealth and are keeping our wealth.

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