Recession now more likely

MarketWatch ^ | 12:44 PM EDT July 2, 2012 | By MarketWatch

[Ernest_at_the_Beach]

WASHINGTON (MarketWatch) — There’s no way to sugarcoat it: The already-sluggish U.S. economy is stalling out, stung by doubts about our economic and fiscal future.

The Institute for Supply Management reported that its manufacturing index dropped to 49.7% in June from 53.5% in May, signaling that the manufacturing sector is contracting for the first time since mid-2009. Read our complete news coverage of manufacturing activity shrinking in June.

Both the ISM headline index and the ISM new orders index plunged below 50% in June.

By itself, the decline in the ISM index below the benchmark 50% level does not mean that the economy is in a recession, but it does make it much more likely. A reading of 49.7% is consistent with slow, but positive growth of about 2.4%, according to the ISM.

The manufacturing sector has been the most robust part of the economy coming out of the recession, but that momentum has now been lost. The U.S. has now caught the fever racing through Europe and China.

[Red Badger]

Recession now more likely......to continue..........

[Moonman62]

Take away government growth and haven’t we been in a recession for about ten years now?

[rwfromkansas]

Uh, looking at the graph, the ISM has contracted before, including last year. Not sure where the writer says that hasn’t happened since 2009 because that’s not true.

[DannyTN]

• Raise import tariffs on high value Chinese imports to get some manufacturing back.
• Require all defense components to be manufactured in the U.S. and of U.S. made parts to help manufacturing and protect our defensive capability.
• Close the border and deport illegals to reduce the labor supply, and thus reduce unemployment and the drain on government coffers.
• Build nuclear plants as fast as possible and allow drilling to bring down energy prices.

[Ernest_at_the_Beach]

Just posted this:

Freedom from OPEC ( American Energy in Play -- The Bakken )

[nascarnation]

I don’t think nukes are competitive at current nat gas prices.

[blam]

Top 10 Warning Signs of a Global End Game

[DannyTN]

That's debatable.

I say use both.

What you don't want to do is build your infrastructure based on a single energy source and then someday find out your estimates of future usage and supply were wrong.

comparing-energy-costs-of-nuclear-coal-gas-wind-and-solar

[cuban leaf]

I call it WD II.

WW I was called the Great War before WW II upstaged it. The Great Depression is now WD I.

[Vendome]

Modern American Currency

One dollar bill: George Washington

Five dollar bill: Abraham Lincoln

Ten dollar bill: Alexander Hamilton

Twenty dollar bill: Andrew Jackson

Fifty dollar bill: Ulysses S. Grant

One hundred dollar bill: Benjamin Franklin

Food Stamps: Barack Obama

[GeorgeWashingtonsGhost]

[TheWriterTX]

We’re in a long-wave contraction, and have been since 2008. I honestly can’t wait for the rest of the pack to wake up and realize this.

[greene66]

It’s gone down, but it hasn’t breached the 50.0 mark, below which is the indicator of actual contraction.

[SoFloFreeper]

[The Sons of Liberty]

Newsflash, The recession never really ended, but morphed into The 0bama Depression!

[crosshairs]

A recession? Finally! Signs of improvement.

[Marine_Uncle]

Thanks E. Interesting analysis by Market Watch.
"The oil being pumped from the Williston Basin is both economical to recover and easy to refine. The Bakken oil is high-grade light sweet crude that is among the best oil on the continent, far cleaner than oil sands petroleum from Canada."

[kempo]

Not until a stake has been driven though the heart of Obama Care very few businesses will be hiring. It's that simple.