"With spending rising at a faster rate than savings, the nation's savings rate dipped into negative territory in November at 0.5 percent. That meant that households spent all of their incomes and either dipped into savings or borrowed to finance the higher level of spending last month." – NYT, 12/21/07
The problem with this scenario is that savings rates have been non-existent for years. “Savings,” over the past several years, has equated to “home equity loan.” Since the home equity fairy was shot and killed earlier this year, November’s hot retail numbers probably come thanks to the credit card fairy. Nonetheless, the genius corps of traders has the Dow up over 200 on this “great” news.
You’ll perhaps bear with me when I make the bold prediction that on or about March 1, 2008 (and maybe even before that), we will start to hear the unmistakable jungle drums of the credit card crisis. And not just the juvenile ramblings that you’ve previously read here. There will come a point where the avenues of financial stupidity will all be closed. Our consumer/service economy, which consists ever more primarily of cooking and serving cheeseburgers on one end and cleaning up the detritus of cheeseburger eating on the other will be outed for the shell game that it is. Wow, my amateur speech writer is really rolling today. You should have read a couple that I deleted – talking about gridlock on the road to ruin and all shit like that.
My other bold prediction is that I will be kicking asses all year. That’s right. I said it, you heard it – kicking asses. I’m going to be like the Tom Brady of Cat 4 in 2008. You should see the crazy numbers I’m pumping out these days. Why, just yesterday I cranked out 155 watts – that’s no typo – 155 beautiful luxurious watts for over 90 minutes, and did it just as easy as that. It’s freaking on like donkey kong, bitches – the cream WILL rise.
For any of you not in on the power geek inside joke, 155 watts equates to roughly the amount of power needed to roll 1 marble 3 feet on a hardwood floor. I told you, I’m strong.
ps - I want a Euro sign key for my computers. It's a cool symbol.