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 ...
Quite. Posted my #20 before I got to yours, but looks like big trouble ahead.
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.
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.
Barely over 1%? Too small.
That wasn't very FREEPER friendly.
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.
Perhaps, but I expect a lot more from FReepers.
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.
Why are 30 yr mortgages at almost 4% when banks basically borrow the money form the Feds for free?
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.
Banks aren't currently borrowing from the Fed.
In fact, the banks are lending to the Fed over $2.5 trillion.
In today’s low interest financial times the mortgage industry didn’t seem to get the memo.
Didn’t get what memo?
Or until the shoppers go to their bosses looking for a raise - or to beg to keep their jobs.
Uh no. Those dollars might be going to Kumatsu or Hyundai.
And no “ pie” would ever get bigger....
Didn’t get what memo?
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.
The economy is nothing like any food item. It grows and shrinks--it is not a fixed size.
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.
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