Menu Close

Comstock: Keep Your Eye on Declining Private Debt

We have seen some statistically significant results from very wise stock market pundits where anyone would be foolish not to be cognizant of the results. These results are important, but not nearly as important as what is taking place in the macro picture with the accumulation and/or liquidation of U.S. debt both public and private. It is our opinion that the accumulation of debt (usually accompanied by inflation) and the liquidation of debt (usually accompanied by deflation) are the most important statistics we should monitor for the direction of the economy and ultimately the stock market.

We believe the private debt decline that has already started will continue, and be led by the consumers who are reigning in their spending habits, saving more, and paying off (or defaulting on) their enormous debt. Although that might seem that deleveraging would be beneficial for our economy, we can assure you that from the present debt levels there will be no “orderly” deleveraging, and consumer demand will contract sharply.

http://www.comstockf…&menugroup=Home

Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share

Discover more from The Wall Street Examiner

Subscribe now to keep reading and get access to the full archive.

Continue reading