Juggling Dynamite

Marc Faber thinks stocks will correct by 20 percent to 30 percent but said they will present good value only if they drop more like 40%. Here is a direct video link.

There is great strength and hope in the basic, common needs of the collective. Dedicated to the brave fight for fairness, truth and equality. Here is a direct video link.

So long as the consumer is pouring on debt, spending can continue longer than reason would suggest. But once the consumer has committed financial suicide and is buried in debt payments, income growth reasserts itself as the defining force on consumption, corporate sales and the consumer dependent economy. And in that regard, this chart of US household income since 2000 shows that consumers have less real income today than they did in 2000 and 2007. Less income and more debt payments than ever before equates to less consumption over the next few years. It also highlights the precarious perch of the S&P 500 now recklessly decoupled from the real economy and teetering far above demand/sales support.