US equities moved sharply lower today on weak economic news out of Germany, and jitters as we approach the US earnings season once again.
Consumer Credit expansion missed forecast in a big way, helping to encourage doubts about the ability of the working classes ability to sustain their consumption with stagnant wages and a weak household balance sheet.
This is not a sustainable recovery. It will keep going while the Fed keeps pumping money, like a car grinding its engine off a battery jump, but unable to fire on its own.
The reason? The financial system is draining all the fuel from the real economy, and the corporate profits are flowing largely into the already stuffed pockets of the one percent.
The Fed is supporting the Banks, and the public be damned.
It really is about that simple.
Have a pleasant evening.
