Durable goods orders below forecasts

http://money.cnn.com/2007/09/26/news/economy/bc.economy.ap/index.htm?postversion=2007092608 ^ | 9-26-07

[Hydroshock]

WASHINGTON (AP) -- Demand for big-ticket manufactured goods plunged in August by the largest amount in seven months, with widespread weakness signaling a slowdown in the nation's industrial sector.

The Commerce Department reported Wednesday that orders for durable goods, everything from commercial jetliners to home appliances, fell by 4.9 percent in August, the biggest decline since a 6.1 percent fall in January.

It was far larger than the 3.5 percent drop that economists had been expecting and resulted from across-the-board decreases in a number of categories. The concern is that the steep downturn in housing and turbulence in financial markets could start to affect the economy more broadly, raising the risks of a full-blown recession.

[Hydroshock]

The hits just keep on coming.

[vietvet67]

And Greenspan is very happy about this retirement timing..

[Old Retired Army Guy]

The Fed. will most likely lower rates again.

[Toddsterpatriot]

The Fed. will most likely lower rates again.

That would be like treating cancer with a bandaid, right hydro?

[Hydroshock]

Yes. And debt is a cancer on the American people.

[Toddsterpatriot]

And debt is a cancer on the American people.

And your cure is to raise rates. Got it.

[live+let_live]

September's numbers will be bad too if the (below identified) trend continues. The flow of junk faxes to my office are still almost non-existent.

This from August:

To: Hydroshock

I’ll be very interested to see the August numbers.

I’ve been watching the flow of junk faxes to my office. They seem to be correlated to the general flow of the economy.

In August the junk faxes all but stopped.

It will be interesting to see if there is any validity to my theory.

11 posted on 08/25/2007 8:41:44 AM PDT by live+let_live

[Hydroshock]

No, the cure is to live below ones means, save, and invest wisely. Not cheaper money. This is what makes the majority of 1st gen millionairs in this country.

[Toddsterpatriot]

No, the cure is to live below ones means, save, and invest wisely. Not cheaper money.

And raising rates and slowing the economy is the best way to encourage that. Got it.

[Hydroshock]

No it is the best wayt to fight inflation and keep the value of the dollar at a reasonable level.

[Toddsterpatriot]

No it is the best wayt to fight inflation and keep the value of the dollar at a reasonable level.

Because cutting rates always raises inflation and weakens the dollar?

[Eagles Talon IV]

After the huge drop in the markets in August, caused by the liquidity crises brought on by the sub prime debacle, this should be no surprise to anyone. One month does not a trend make.

[Eagles Talon IV]

LOL, geez, show some mercy, will ya?

[Eagles Talon IV]

Better check your armament. I think you may have mistakenly brought a knife to this gun fight.

[HamiltonJay]

Lowering Rates will do ZERO in the short term.... other than stop some ARM readjustments.. it takes about 18 months for a rate cut to flow through the economy.

Japan had their rates at 0% and was in a recession for over a decade....

Rate cuts are no panacea, not even close.

[Toddsterpatriot]

He brought a rubber knife.

[Toddsterpatriot]

Lowering Rates will do ZERO in the short term.... other than stop some ARM readjustments

They didn't lower rates to stop ARM readjustments.

Rate cuts are no panacea, not even close.

Who said they were a panacea?

[Eagles Talon IV]

Yeah, really.

[Hydroshock]

I honest do not care what the re shrills and the money changers say. I am prepared for the coming recession, my debt is low my savings are high. And my work situation is very tight. I work for as a contractor for a state agency and the a contract through 2011, my wife is a teacher.

[Toddsterpatriot]

I am prepared for the coming recession, my debt is low my savings are high.

Same here.

I work for as a contractor for a state agency and the a contract through 2011, my wife is a teacher.

So the guy with the recession proof job thinks a recession is best for the rest of us? That's funny!