GDP and Stocks

FN: The post Further On GDP and Stocks over at Sudden Debt breaks down the components of GDP and explains their effect on the economy putting real hard numbers on the points I argued in my two posts, Employment: Not a Lagging Indicator at these Levels and Watch the Divergence Between Earnings and Revenues.

U.S. Incomes Fall 1.3%, Biggest Drop in Four Years (Update1): " U.S. personal incomes tumbled 1.3 percent in June, more than forecast and the biggest drop in four years, signaling that consumer spending will take time to recover."

FN: This ain't gonna be pretty. The deflationary feedback loop is in full force now and almost certainly cannot be broken. The ammunition has already been spent.