Rosenberg Daily - Deflationary Environment Recap

Rosenberg, 6/8:  Although periodic government-induced tax credits and subsidies temporarily bolster consumer spending, the primary trend towards frugality is clearly intact. Even with record high homeowner affordability, mortgage demand on the part of the U.S. household sector has slumped to a 13-year low. And, even with substantial promotional activity by retailers, American shoppers are relying less and less on plastic to charge their purchases. The scars from the asset deflation and bursting of the credit bubble continue to heal, and in this process, household attitudes towards homeownership, debt, and the discretionary segment of the consumer budget are undergoing a secular (semi-permanent) shift.