James Robert Kelley

I’m not going to play with words on this, I think the worst is yet to come for the economy.  If you look at the consumer spending in 2007, when the recession started ( we didn’t figure it out until late 2008 ), you will see that Home Depot and its competitors experienced a downturn in sales.

Since our bubble economy is based on inflated housing prices, which produces credit, the government offered stimlus in the for of housing tax credits.  This created another mini-bubble and profits started to tick up.  The article below you will see the details, but a couple highlights:

Third-quarter sales fell 8 percent to $16.4 billion. The average customer ticket in the period dropped 7 percent to $51.89.

On Monday, Home Depot rival Lowe’s Companies Inc. reported its profit for the third quarter dropped nearly 30 percent to $344 million.

Home Depot profit slides in third quarter – Atlanta Business Chronicle:

The article has the usual Love and Light comments for the economy, and prayers to the false gods of money.  Once you get past all of that, think about this: What will happen when the government cannot afford to keep stimulating?  Look for the answer here, CNN: U.S. about to hit debt ceiling – again.