New York, NY (PRWEB) September 23, 2012
According to Michael Lombardi, lead contributor to Profit Confidential and financial expert, the evidence of the slowing U.S. economy is quite apparent. While the occasional economic data might suggest there are spots of recovery in the U.S. economy, Lombardi reports that these are tiny bounces in a bigger scheme of problems.
“The biggest problem, as elementary as it sounds, is that consumer confidence in the U.S. economy is collapsing,” says Lombardi. “In order for the U.S. economy to grow, consumer confidence has to be robust.”
In the article “More Bad Economic News: Consumer Credit (Borrowing) Collapses,” Lombardi notes that the U.S. economy is based on consumption and more than two-thirds of gross domestic product (GDP) in America consists of consumer spending.
“If consumer confidence is low, consumer spending is low—damaging the U.S. economy,” explains Lombardi.
Considering consumer credit to be a key indicator of consumer confidence, Lombardi reports that consumer credit fell to $3.3 billion in July, the first drop after 10 months of positive data.
Lombardi claims that the decline in consumer credit has caught the U.S. economy by surprise.
“Consumer confidence is in the slumps because the U.S. economy is in a horrifying state,” says Lombardi, noting that consumers can’t be blamed, as they are justified in their lack of confidence in the U.S. economy.
“For economic growth, consumer confidence has to increase, and consumers need to feel comfortable while spending,” reasons Lombardi. “Economic growth happens when wealth in an economy is created, and this is clearly not being witnessed here in the U.S. economy.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.