Consumers paying off debt

According to Bloomberg news report this morning, "A record $21.6 billion drop in borrowing by Americans added to evidence that consumer spending will be slow to recover as banks and credit-card companies tighten lending standards and households pay down debt.

Consumer credit fell by 10 percent at an annual rate in July to $2.5 trillion, according to a Federal Reserve report released yesterday in Washington. The drop was more than five times larger than economists forecast. Credit fell for a sixth month, the longest series of declines since 1991."

Still think the stock market rise has been justified? Add this to your calculus, Extreme Luxury car purchases (Bentley's, etc) are down over 50% from last year's comparative sales. Even the super wealthy have trimmed their spending side.