Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 07/04/2010 7:55:32 AM PDT by blam
U.S. Economy Falling Towards Another Credit Collapse?
Economics / Credit Crisis 2010
Jul 03, 2010 - 09:56 AM
By: Bob Chapman
The Fed says US unemployment is likely to stay high for a long time, and that justifies zero interest rates indefinitely.
The June Chicago Purchasing Managers Index was 59.1 vs. 59.7 in May. The employment component rose to 54.2 from 49.2 in May. New orders fell to 59.1 from 62.7.
Homebuilder Lennar is cutting new home prices 15% as new orders fell 10%. KB Builders said new orders fell 23%, as new home sales fell 32%.
The MBA Purchasing Applications Index fell another 3.8% week-on-week and was 36% lower year-on-year.
The housing market is in serious freefall with builders scheduled to increase units by 535,000 this year. As sales fall so will big bank balance sheets. That means we are facing another credit collapse.
The US stock market seems to have a case on indigestion. The Dow continues to struggle just above 10,000 and is getting ready for another test of recent lows, which we believe could very well be broken. Markets worldwide share the downward pressure. We predicted a lower Chinese market in September and it has since fallen 23%, as China prepares for the bursting of their recent real estate bubble caused by the injection of $1.8 trillion into the economy. It could be that debt restructuring could be needed by the five PIIGS of the euro zone. The elitists are talking in terms of five years when that problem may have to be faced over the next six months to a year. There is the call for great fiscal centralization and the final death of sovereignty. Europe did not do well for ten years; they just hid their problems, much as other nations have. The euro has proven to be another unnatural creation engineered to bring about a world currency.
As sovereign debt problems rage across the world financial scene, the prices of stocks and commodities are fading and bonds could be topping out. Who would be willing to accept a yield of slightly under 3% for a US Treasury note? In addition, commodity currencies are under pressure. The dollar remains relatively firm after having fallen to 85.42 on the USDX from a recent high of 89. In that process the dollar cold be completing a head and shoulders, which could in time portend a much lower dollar. There are certainly lots of uncertainties out there, as volume increases each time the market falls, a sign that the natural direction is downward. AAA companies have done well in the recent past in part due to plenty of cheap money. In the second half of the year their earnings should begin to fade as GDP falls into the minus column. That fall can be stopped if more stimulus is added or if the Fed injects $2 trillion more into the economy.
The unemployed won’t get extended benefits, but the bankers and Wall Street got most of what they wanted in the financial reform package. That includes making the Fed, which is privately owned, into a tyrannical, financial monopoly. The unemployed don’t contribute to campaigns, Wall Street and banking does. The reality is special interest money controls our House and Senate, and that is why incumbents have to be kicked out of office in November.
[snip]
“For the twenty-third time in a row, indicators unexpectedly dropped...”
And just wait for the downward revisions after they actually review the numbers...as is typically the case.
Those with talent go into real professions.
Those that don’t go into government or journalism and become “experts”.
I can’t wait! I am all for it....except the O could start nationalizing business and industry...we gotta stop THAT.
I think he has already started.
that picture is crazy- ZerO is flying straight for never, neverland.
Bob chapman has good commentary on youtube.
“I think he has already started.”
You are correct.....he will just finish it!
NO WAY!
"Bite Me" Biden, brain-damaged Vice Preztard, has decreed that it's "Recovery Summer":
"(6/17/2010) Vice President Joe Biden today will kick off the Obama administration’s “Recovery Summer,” a six-week-long push designed to highlight the jobs accompanying a surge in stimulus-funded projects to improve highways, parks, drinking water and other public works."
So, like, another credit clapse is IMPOSSIBLE, in the same way that it was impossible for "President" Roosevelt to get on TeeVee in 1929 and buck up our National Morale (as related to Bobble-Head Couric by "Bite Me" in 2008...).
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