Yesterday’s disappointing consumer credit report was unwelcome news for those hoping that the consumer would drive the U.S. recovery.
Economist Gary Shiling continues to argue that we are still in the beginning of a painful decade-long period of deleveraging.
“The U.S. economy is in or close to a consumer-led recession,” Shilling told Business Insider today.
“Retail sales fell in April, May and June – and 27 out of 29 times sales fell for three consecutive months since data started in 1947, the economy was in or within three months of a recession. The weakness in consumer borrowing reflects the consumer retrenchment after their mini spending spree last year.”