Economics Update

Well, now we have a report from MasterCard saying that gasoline consumption rose year over year for the first time since April, which I guess gives us an indication of just how quickly American consumers go back to their old ways when fuel prices fall.

In the meantime, Calculated Risk's Credit Crisis Indicators have shown a bit of improvement, though with people taking negative interest to be in US treasuries, I'm not sure how reassuring that it.

In any case, it's now clear that last week's surge in mortgage applications was from people scrambling to lock in rates and this week, we have the application rate plunge, because this week's applicants rushed to apply last week.

Meanwhile, consumer spending looks to post the biggest drop since just after Pearl Harbor, which is really pretty scary when you think of it.

And there won't be much help on the export markets, with both China and Europe showing more signs of slowing themselves.

Which leads one to wonder when they will stop lending to us, because the U.S. budget deficit was $164.4 billion in November, up from $98.2 billion in November 2007.

Finally, we have oil rising on a Saudi supply cut, retail gasoline dropping for the 84th straight day, and the Dollar was mixed again today.