Master This! Big Credit Cards Taking Big Hit

Mastercard further confirms recent messaging we have been trying to tell you over the past several posts. As we already knew, most people can't afford most things. Those most people who could not afford most things bought them on credit. Most of these things came in little packages and small and were inexpensive to expensive. Now the credit contraction is sucking air out of the room like a NASA training camp simulation.

They reported that October was severely bad to them in breadth. Particularly, the magical note with Grover Cleveland on it is a difficult barrier for people to commit to be purchasing with money they don't have in the face of potential job loss or cutbacks. In my day, 1,000 was really a lot of money. Granted, running the printing presses as long as they have this decade made it less so or taken as a fraction of insane housing valuations even less still. I yearn to return to when 1,000 seems like a lot of money to the populace via deflation in the credit contraction as money undergoes evaporation like some spilt Bacardi 151 on a hot phoenix summer day.

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Consumer Spending Drops Most In 28 Years

In the 3rd quarter of 2008, consumer spending fell the most it has fallen since 1980. Notably, this was the first cutback in spending in 17 years according to AP. Spending fell by a huge amount: 3.1%.

Compounding the problem, and showing another symptom of a bleak outlook for retail and consumer-based industries, disposable income for American families fell 8.7% this quarter -- the largest drop since 1947.