Retail Sales Data

For the first time in 16 years, annualized retail sales fell. The report released today highlighted the weakness in the consumer sector: December, 2008 was the worst month since September, 2005. Although $4.48 trillion in retail sales for all off 2008 sounds great, the fact that the figure dropped ever so slightly from 2007's $4.49 trillion does not bode well for the consumer discretionary category. From Macy's closing stores to the bankruptcy of Linens 'n Things, Circuit City and today Gottschalk's, the commercial mortgage market will continue to incur losses. Following the dominoes, banks will continue to need capital.

Please note: Retail sales were 18.8% of GDP in 2002

Retail sales were 31.7% of GDP in 2007.