My second post of the day.
Michael sez: This is off of Reuters but I copied it over from http://thecomingdepression.blogspot.com/. This guy is good and you ought to give him a read.
Tuesday, October 6, 2009
Everything Collapsing "Unexpectedly"
LONDON (Reuters) - Industrial output plunged unexpectedly in August and at its sharpest monthly pace since January, according to official data, denting hopes for a strong rebound in growth in the third quarter of this year.
The Office for National Statistics said manufacturing output fell 1.9 percent on the month, confounding analysts' expectations for a 0.3 percent rise. July's increase was revised down to 0.7 percent from 0.9 percent. Consumers tighten belts in face of GDP slump.
The Economy is Dead Men Walking
Credit is everything. Without credit expansion there's no recovery because there's no pick-up in overall demand. But credit growth is going backwards. The banks have tightened lending standards and the pool of credit-worthy applicants has vanished. Bank lending is off 14 per cent since October 2008. Private credit is presently decreasing at a 10.5 per cent annual rate. The situation is getting worse, not better.(snippet)Consider this from Janet Tavakoli, author of "Dear Mr. Buffett" in an interview with Max Keiser:"Regarding the outlook, my analysis is grim. I am not a doomsayer, I follow the cash, and so far, I've been correct, and the government has been wrong. Here's the situation. We are at greater risk of a total meltdown due to a deflationary collapse than we were in 2007.