James Hamilton doesn’t think that Consumer Spending making up 200% of economic growth is too important, unlike Kash Mansori, who worries that the isolation of positive Indicators other than Consumer Spending holds potential danger. I have previously stated GDP data was a poor Evaluator of economic performance, and that GDP was bound to decline in magnitude somewhere in the next decade due to the Ageing and Declining Population, coupled with the increasing Costs of Resources. That said, the BEA report was lousy.

James Hamilton asserted the common Economist belief that Residential Housing will drag down economic growth each Quarter by about 1%. I say it might be more Wish than Estimate, though, as the Housing market needs to lose about $1 trillion in Property value to reach a solid foundation; remembering, of course, that this is only my own Estimate. The decline in Exports may be the most worrisome element, because it might be the stickiest part of the matrix; this on account of the foreign development of cheaper Substitutes for American Product. The loss of overall American Investment, but more specific Business Investment, indicates full employment features under current technology, along with the heavy losses in the Residential markets. Depressing!

Jeff Cornwall gives access to a couple of his articles in the Tennessean which describes the roles of CEO and Bankers. It is my suggestion that CEOs read his article on Bankers. Boom Times make the aspects of Jeff’s description fade from Sight, but economic contractions bring on the worst appearance of Bankers. Most Business personnel never get to see Downsizing or Elimination of Revolving Credit Accounts, thinking such Instruments possess some kind of immortality–never failing like the Fountain of Youth. One should check the impact of rising bad Debt rates on Banker willingness to lend. lgl