Posted on 07/30/2014 3:14:32 PM PDT by Perdogg
Back in December 2013, when everyone was expecting a 3% GDP print for Q1, we did a simple analysis concluding that "Inventory Hoarding Accounts For Nearly 60% Of GDP Increase In Past Year." We stated that this "hollow growth", which is merely producers pulling demand from the future courtesy of cheap credit and assuming the inventory will be sold off in ordinary course of business without bottom-line slamming liquidations or dumping, and which further assumes a healthy US consumer and global economy, is a flashing red flag for the future of US economic growth. In fact, we were one of the very few who warned that Q1 GDP would be a disaster: "The problem with inventory hoarding, however, is that at some point it will have to be "unhoarded." Which is why expect many downward revisions to future GDP as this inventory overhang has to be destocked."
(Excerpt) Read more at zerohedge.com ...
Bump
I think I’m in trouble. I think I’m in bubble.
Is that what all that stuff UPS and FEd EX and the mailman keep dropping off?
Inventory accumulation..?
Wifey could open a nice jewelry, books and clothing store..
if that’s what ya call it. ;-]
Even their rigged GDP numbers ( revised to include things NEVER included before ) had to be rigged some more !?
I `m at a loss as to what is propping up the economy and why it hasn`t crashed yet.
What a Crock.
So businesses allowed the “Channel Stuffing” and sat on unsold goods, they paid for?
BS
There isn’t a better place for investment? I keep hearing that.
And maybe the Chinese.
Ya. Funny thing about business — you have to get paid. And you aren’t paid until the product sells at the other end. It is called sell through.
They even admit it:
“estimates and incomplete data.”
Best place to invest solely based on previous reputation.
Once the BRICS are up and running with a new stable alternative reserve currency based on gold it`s game over for the USA.
Yup.
Happened at my old company that way — coasting on their reputation. My old company, a very large computer company, is no more.
Same thing with the appliance brand Maytag (one of my gripes).
Whudduh I No?
/s
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