"Everyone" appears to have focused on the U.S. labor report on Friday, but missed mention that consumer credit (as best as we can measure it) actually grew at a 3.2% annualized rate in September, a figure also reported on Friday.
Nevertheless, that of course doesn't mean that the risks of a sharp downturn are past or over. Policy makers should plan for the worst, even while hoping for the best. Yet, if we are going to have a swift, nasty consumer-deleveraging contraction, we can now say that it isn't 100% in the cards yet, with two-to-three more cards to draw, now, in order to make that hand ...
If doomsayers can pin their "fears" of a depression on a single negative number from the prior period, why can't others pin their "hopes" on a single number, too, eh?
Saturday, November 8, 2008
The Depression Has Been Cancelled?
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