Fuel Efficiency Doesn’t Lower Demand, It Raises It – Mark Perry – … Why? Because improvements in fuel economy effectively make fuel less expensive, and when costs fall, demand tends to rise.  … – Carpe Diem Blog 

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SLASHED CREDIT (CARD) LIMITS COULD HAMPER GDP – JAMES DORAN – Credit-card companies, which have been slashing credit limits on millions of cardholders in an attempt to right their balance sheets, are also sucking up to $200 billion of much-needed spending power out of the economy, credit-industry professionals tell The Post.  That amounts to nearly 1.5 percent of gross domestic product, or GDP, enough to further stymie the already fragile economy – NY Post

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Don’t Count on the Consumers This Time – Joseph Rosta – TARP beneficiaries have been urged by White House and legislators to redirect a large portion of the federal cash into consumer loans … This is not to suggest that those inside the Beltway believe banks ought to lend to consumers who are already overleveraged … continues Beim. There is no pleasant choice: “When people reduce their consumption and pay back their debt, that endangers the economy. But extending credit under these circumstances will lead to defaults and endanger the banks.” … – US Banker