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This Report Is A Terrible Sign For The Economy
BI ^ | 1-27-2015 | Myles Udland

Posted on 01/27/2015 7:35:52 AM PST by blam

Myles Udland
January 27, 2015

It is officially a horrible morning for the economy.

After the global manufacturing giant Caterpillar had poor fourth-quarter results and gave a gloomy outlook for 2015, economic data from the US has added to more bad news for the economy Tuesday morning.

Durable goods orders were a HUGE miss, declining 3.4% against expectations for a 0.3% increase.

Durable goods orders excluding defense and transportation orders, referred to as "core" capex, declined 0.6% in December.

Last month's numbers were also revised sharply lower, with November's orders revised down to -2.1% from a prior number of -0.7%.

Following these results, Dow futures were extending their losses, falling by as many as 300 points, while S&P 500 futures were down 27 points, and Nasdaq futures were down 66 points.

(snip)

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: caterpillar; dollar; ecoomy; investing
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To: alloysteel

Quite. Posted my #20 before I got to yours, but looks like big trouble ahead.


21 posted on 01/27/2015 8:50:38 AM PST by Riflema
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To: reformedliberal

To most of us born in the last 70 years, we’re entering the Twilight Zone in economic terms. Deflation. Sounds good, but outside of the Pats, it is going to screw us all.


22 posted on 01/27/2015 8:51:54 AM PST by Riflema
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To: Toddsterpatriot

They should reinstitute the trading halt rules in the 1990’s—where any drop over 200 points in the DJIA automatically triggers trading slowdowns, including ending all trading for the day if the drop exceeds 600 points from the start of the session.


23 posted on 01/27/2015 8:54:40 AM PST by RayChuang88 (FairTax: America's economic cure)
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To: RayChuang88
They should reinstitute the trading halt rules in the 1990’s—where any drop over 200 points in the DJIA automatically triggers trading slowdowns,

Barely over 1%? Too small.

24 posted on 01/27/2015 9:01:00 AM PST by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: ShadowAce; urbanpovertylawcenter
You are an idiot, economically speaking.

That wasn't very FREEPER friendly.

25 posted on 01/27/2015 9:26:49 AM PST by 11th Commandment ("THOSE WHO TIRE LOSE")
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To: RayChuang88
They should reinstitute the trading halt rules in the 1990’s—where any drop over 200 points in the DJIA automatically triggers trading slowdowns, including ending all trading for the day if the drop exceeds 600 points from the start of the session.

That's only trying to hide reality. Stopping trading doesn't affect the fundamentals that caused the stock prices to drop. Rising or falling stock market indices like the DOW are effects, not causes of things in the real economy.

Stopping trading following a drop in stock prices is like breaking the thermometer in an attempt to stop a cold wave.

26 posted on 01/27/2015 9:46:47 AM PST by JoeFromSidney (Book RESISTANCE TO TYRANNY, available from Amazon.)
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To: 11th Commandment; urbanpovertylawcenter

Perhaps, but I expect a lot more from FReepers.


27 posted on 01/27/2015 10:48:08 AM PST by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: grania

We are already in a world financial war. The fallout will be extensive. Basically every nation for themselves. Just ask the Saud’s and the Greeks.


28 posted on 01/27/2015 10:56:22 AM PST by justa-hairyape (The user name is sarcastic. Although at times it may not appear that way. Was)
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To: Riflema

Why are 30 yr mortgages at almost 4% when banks basically borrow the money form the Feds for free?


29 posted on 01/27/2015 10:59:52 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: alloysteel

Remember, deflation is also a function of the NUMBER of consumers in the market, not just the number of dollars chasing goods - which is unprecedented since Weimar.

If there are no buyers, it doesn’t matter how many dollars there are, and that’s where this policy of QE starts to high-center. They are driving out growth at the same time they are flooding the market with cheap dollars.


30 posted on 01/27/2015 11:50:05 AM PST by RinaseaofDs
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To: central_va
Why are 30 yr mortgages at almost 4% when banks basically borrow the money form the Feds for free?

Banks aren't currently borrowing from the Fed.

In fact, the banks are lending to the Fed over $2.5 trillion.

31 posted on 01/27/2015 12:15:31 PM PST by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: Toddsterpatriot

In today’s low interest financial times the mortgage industry didn’t seem to get the memo.


32 posted on 01/27/2015 12:31:04 PM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

Didn’t get what memo?


33 posted on 01/27/2015 12:33:02 PM PST by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: Riflema
Dropping prices look good on the surface but if you build dirt moving equipment not so much.

Or until the shoppers go to their bosses looking for a raise - or to beg to keep their jobs.

34 posted on 01/27/2015 12:36:54 PM PST by Sirius Lee (All that is required for evil to advance is for government to do "something")
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To: urbanpovertylawcenter

Uh no. Those dollars might be going to Kumatsu or Hyundai.


35 posted on 01/27/2015 12:39:35 PM PST by Kozak ("It may be dangerous to be America's enemy, but to be America's friend is fatal" Henry Kissinger)
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To: ShadowAce

And no “ pie” would ever get bigger....


36 posted on 01/27/2015 12:40:38 PM PST by Kozak ("It may be dangerous to be America's enemy, but to be America's friend is fatal" Henry Kissinger)
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To: central_va

Didn’t get what memo?


37 posted on 01/28/2015 1:06:06 PM PST by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: ShadowAce
You got me there!

So is it more like a cake? The economy?

I just filled my airplane with $4.40 a gallon avgas.

$50 less than last months fill up. I will put the 50$ towards my dozer purchase.

I am a happy idiot.

38 posted on 01/29/2015 12:29:33 AM PST by urbanpovertylawcenter (the law and poverty collide in an urban setting and sparks fly)
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To: urbanpovertylawcenter
So what you are saying is that everyone is gonna spend, spend, spend, and never save? Or that some won't lose their jobs and have nothing to spend? Or that others may get a promotion and spend more?

The economy is nothing like any food item. It grows and shrinks--it is not a fixed size.

39 posted on 01/29/2015 7:43:11 AM PST by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: ShadowAce
Saving inflatable fiat currency is risky, invest some in safe instruments like farm land and airplanes so you can grow something to eat or you can go somewhere if you need to.

And what you say about the changing economy is spot on, funny how government is not tied to any economic laws. They grow while we shrink.

How does that happen?

I believe the middle class has been scraping by and have unmet wants like mom's KitchenAid appliance that they have not been able to afford since big oil went all Clinton on us in 2007. Now that a few dollars will be left over, if not sucked off by Obamacare, some flurry of expenditures will be seen here in the short term.

40 posted on 01/31/2015 4:32:56 AM PST by urbanpovertylawcenter (the law and poverty collide in an urban setting and sparks fly)
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