http://www.indiadaily.com/editorial/20849.asp
Gap in personal income and personal spending data show people are dipping into debt again – the bear market getting ready for acceleration downward Paula Zuba Aug. 2, 2009
On Tuesday, 4th of June, Personal income and spending data will be available. The market expects a decline 1.0% in personal income and a steady rise of 0.3% in personal income. The PCE deflator is expected to rise 0.3% month over month. That shows that people are just coping up with the in built inflation pressure within a depressed economy.
The huge gap between income and spending growth manifest the fact that people are dipping into debt again. Some of these are home equities and credit card loans. But the bulk of it is 401(k) loans. The net result is devastating. The economic meltdown is just on hold and is counting time.
The bear market getting ready for acceleration downward.