dow has softened in the past week or so, page-2

maybe the penny has dropped, this is not going to a be a V shaped recovery. recovery is linked to the consumer and no economic data has shown that their plight has changed.

from bloomberg, report come out 5/6 :

Consumer Credit in U.S. Falls Second-Most on Record (By Vincent Del Giudice

June 5 (Bloomberg) -- Borrowing by U.S. consumers had the second-biggest drop on record in April as the jobless rate reached its highest in a quarter century and accessing loans remained difficult.

Consumer credit fell $15.7 billion, or 7.4 percent at an annual rate, to $2.52 trillion, according to a Federal Reserve report released today in Washington. Credit decreased by a record $16.6 billion in March, more than previously estimated.

Spending by consumers declined for a second consecutive month in April as the unemployment rate increased to 8.9 percent, a level not seen since 1983. The number of people collecting jobless benefits broke records for 17 weeks before the end of May, causing Americans to put off purchases out of fear they might lose their jobs or take longer to find new ones.

“Consumers have retrenched in the face of rising unemployment and are paying down their debts and increasing their savings,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “Those consumers who do want to spend are having their credit limits cut left and right by banks that are increasing their credit-risk checks.”

Economists had forecast consumer credit would drop $6 billion in April, according to the median of 29 responses in a Bloomberg News survey. Projections ranged from a $9 billion drop to a gain of $1.5 billion. The Fed initially reported that consumer credit decreased by $11.1 billion in March.