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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: jimmg who wrote (76471)	12/22/2006 5:13:19 PM
From: russwinter	Read Replies (3) \| Respond to of 110194

<middle class still has the ability and propensity to not only sustain but to grow their spending.> If you measure middle class "ability" () by cash on hand to buy products AND service debt and bills, then they have few "resources" () left. Lows in demand deposits occur mid-month (after mortgages are paid) and here's another low. research.stlouisfed.org As far as "propensity" (*), that's another issue. But having an inclination is dangerous indeed without the ability. Not sure you should hang your hat just on consumer "inclinations" much longer, or on lenders prior propensity to loan new reserves to people with poor ability. Fighting gravity if you do, they will fall to earth. () Webster's "ability": having sufficient resources or power () "resources": available funds, or new reserves (*)"propensity" : inclination or interest in

To: jimmg who wrote (76471)	12/22/2006 5:47:25 PM
From: regli	Read Replies (2) \| Respond to of 110194

"Results by Nike and Carmax this week tell me that the vast middle class still has the ability and propensity to not only sustain but to grow their spending." Looks like they are getting into quite a bit of trouble...

To: jimmg who wrote (76471)	12/22/2006 6:32:03 PM
From: Les H	Read Replies (1) \| Respond to of 110194

"Results by Nike and Carmax this week tell me that the vast middle class still has the ability and propensity to not only sustain but to grow their spending." The Carmax report shows that the middle class is substituting lower-priced used cars for buying new cars. The average selling price on the used cars is just 71 percent that of the new cars but yield a profit margin on each unit that's 80 percent higher. The demand for used cars has caused their average selling price to jump by 6 percent in the last year. biz.yahoo.com