This is what happens when a consumer spending economy stops peak spending

The US consumer was once famous for their spending habits.  Consumer spending was almost 70% of their economy.  But their increase in spending over much of the 2000's was because of their huge credit bubble. This is what happens when consumers deleverage.

From the Atlantic

Here's a short story with big implications. In May 2008, six months after the Great Recession set in, a typical family earning less than $90,000 a year spent $105 daily. One year later, in May 2009, they spent $59 a day.

Then in May 2010, they spent $59 a day. In May 2011, they also spent $59 a day.

Why is employment stuck above 9 percent? I just told you.

With Canadian consumer spending amounting to about 65% of the Canadian economy and households in Canada in more debt than the Americans at the peak of their bubble, it does not take a rocket scientist to figure out what will happen to the Canadian economy when consumers start to deleverage.  It won't be as bad as the US, but it still won't be pretty.