Skip to comments.Summer Slump Siphons Hopes For Obama Surge
Posted on 07/04/2012 7:00:15 AM PDT by SeekAndFind
"We're starting to feel the infection now."
-- Michael Feroli, a J.P. Morgan economist, talking to The Wall Street Journal about the first monthly decline in Institute for Supply Managements measure of U.S. manufacturing output since July 2009, including the sharpest drop in new orders since the plunge that followed Sept. 11, 2001.
The perversity of a continually crummy economy is that sometimes the best news for investors is bad news. Thats the case with the surprisingly steep drop in manufacturing output in June. The measure slipped into negative territory for the first time since the American economy technically escaped recession three years ago. It would seem logical that this would cause more anxiety in already roiled investment markets, but not so.
The news was so bad that it caused new hope that the Federal Reserve would engage in a third round of quantitative easing, which is the polite way to say that the U.S. central bank would conjure hundreds of billions of dollars into being and then buy up the investment holdings of private banks in a bid to get those banks to make loans with their profits. The Fed then sits on the investments until such time as markets are deemed stable enough to withstand their sale.
There's much debate over the efficacy of this practice, favored by Federal Reserve Chairman Ben Bernanke, but investors love it whether it works or not. A predictable jolt for the economy is something that can be profited from in short term, whatever happens in the long run.
Good or bad, any predictable event is an opportunity for profit.
The current slowdown is blamed on a cyclical contraction in global markets. Europe is deathly ill and locked in a debt spiral and China is coming down hard off of a stimulus-driven high
(Excerpt) Read more at foxnews.com ...
..the only surge the usurper is getting now is from European Progressives who hate America and see him as a failure....just going to be small "change"
Hell, I've blown BAC's higher than .35%!
Because that’s what our Republic, it’s institutions and economic future are all about-supporting the political fortunes of Choomie.
I don’t know about other manufacturers but Electrical equipment manufacturers work overtime to build inventory in June because they all shut down for vacations in July so this big drop-off in June production may be even worse than it appears.
I hate actually wanting the economy the decline, it’s not a very patriotic stance. But, if the economy stays in the crapper for a few more months, maybe the American people will send obongo packing. Whatever means necessary, right libs?
Meant to write, “to decline.”
That is freakin' HILARIOUS!!!