Tuesday, October 6, 2009


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.


Dr. Richard said...

All the various government stimulus and manipulations and lies have done is push the day of collapse off and transform the collapse from a slow gradual one to one that very likely could be a sudden-stop fast-crash where everything is fine one day and markets are non-functioning the next.

Pete Smith said...

I think it will be a one day unexpected crash. It will hit like a ton of bricks. I know so few who are even close to being ready. This is going to be 100 times worse that most think.


Mayberry said...

Ain't it amazing how all this stuff is always "unexpected". People don't have jobs, manufacturing is leaving this country like rats from a sinking ship, and what's left of our economy is based on complete bullsh!t, fed to us by the government and their banker masters....