https://www.cnbc.com/2024/09/24/september-consumer-confidence-fal...

https://www.cnbc.com/2024/09/24/september-consumer-confidence-falls-the-most-in-three-years.html

"September consumer confidence falls the most in three years

Consumers’ view on the economy tumbled in September, falling by the largest level in more than three years as fears grew about jobs and business conditions, the Conference Board reported Tuesday."


Panic interest rate cuts in the US + panic stimulus measures in China = consumer rolling over?

Its how deflation starts when the consumer simply loses confidence. Doesn't take long for them to work out they don't really need the "luxury items" they have been buying. So they close their wallets and start buying essentials only and the economy collapses. Earnings plummet, businesses close, unemployment skyrockets and eventually we go full circle and start the ride all over again (very simplified version).

But when the two biggest economies in the world are in panic mode what else do we expect to happen? A soft landing? Bulls think we can print our way out of trouble but they are wrong as history shows. Simple truth and why we have terms like extremes, you can't inflate to infinity once there is nothing left to inflate. Once its broke its broke. Why do you think we have crashes?

Printing money is nothing new, they do it every time but we always crash once we break it. Smart money then simply stick a pin in it, take their money and go. Retail are left waiting for the bounce they bought in for and the rinse and repeat starts again with a new generation of bag holders. Meanwhile smart money waits for the crash to end to buy their stocks back again for next to nothing and we start the ride again.

P.S. Like I said its always the same script with different actors but the same result each time. Good luck all IMO its time to be very careful its not something you want to get caught in if the bears are right: