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"Credit card lines are being cut at an accelerating pace," Whitney said on Tuesday, "and this clearly does not bode well for consumer confidence or prospective consumer spending".
One predominant reason she remains so cautious on the U.S. consumers and prospective consumer spending over the next year and a half is the overwhelming trend she sees in available consumer liquidity.
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My chart on owners' equity in homes cascaded downward from 60% to 40%, another prospective factor restraining consumer spending for years to come.
The prospects for consumer spending look grim.
Committee members worried that a spiral could begin if "reduced employment and production weighed on consumer spending and investment, and as the weakening economy bolstered the prospective losses of financial institutions, leading to a further tightening of credit conditions".
Property prices have moved up amid hopes that a prospective trade pact with the mainland, known as the Economic Cooperation Framework agreement, will help revive demand for property and consumer spending.
Consumer spending has weakened.
Consumer spending jumps.
Consumer spending is vibrant.
Consumer spending might slow.
Consumer spending has stalled.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com