O'bama and the Fed better throw some more money at this before it's too late!!!
Horror for US Economy as Data Falls off Cliff
Wednesday, 1 Jun 2011
By: Patrick Allen
CNBC EMEA Head of News
http://www.cnbc.com/id/43239586
y mas...The last month has been a horror show for the U.S. economy, with economic data falling off a cliff, according to Mike Riddell, a fund manager at M&G Investments in London.
"It seems that almost every bit of data about the health of the US economy has disappointed expectations recently," said Riddell, in a note sent to CNBC on Wednesday.
"US house prices have fallen by more than 5 percent year on year, pending home sales have collapsed and existing home sales disappointed, the trend of improving jobless claims has arrested, first quarter GDP wasn’t revised upwards by the 0.4 percent forecast, durables goods orders shrank, manufacturing surveys from Philadelphia Fed, Richmond Fed and Chicago Fed were all very disappointing."
"And that’s just in the last week and a bit," said Riddell.
Pointing to the dramatic turnaround in the Citigroup "Economic Surprise Index" for the United States, Riddell said the tumble in a matter of months to negative from positive is almost as bad as the situation before the collapse of Lehman Brothers in 2008.
"The correlation between the economic surprise index and Treasury yields is very close, so the lesson is that whatever your long term macro views are regarding hyper inflation vs. deflation or the risk of the US defaulting, the reality is that if you want to have a view about government bond prices, the best thing you can do is look at the economic data to see what’s actually going on," said Riddell.
- Spoiler: show
Dow Jones suffers biggest fall in a year as analyst says: 'We're on the verge of a Great Depression'
By Mark Duell
1st June 2011
http://www.dailymail.co.uk/news/article ... ssion.html
Say...Manufacturing index falls to 53.5 from 60.4 in April
Private employers added just 38,000 jobs in May
Dow Jones crashes more than two per cent by 280 points and erases quarter of year's gains
Republicans press Obama for detailed plan on cuts
It might be time to hold onto your hats again as the U.S economy crashes.
A market strategist gave the dire prediction that ‘we’re on the verge of a great, great depression’ as the economy suffered a triple blow today.
Big falls in job growth and the manufacturing sector wiped out more than a quarter of the Dow
The index fell 280 points - more than two per cent - as top House Republicans pressed President Obama for a detailed plan on budget cuts.
The 2.2 per cent drop was the biggest point fall since June 4 last year - and the largest percentage fall since August.
Peter Yastrow, market strategist for Yastrow Origer, said he is seeing ‘near panic’ with investors unwilling to punt on unpredictable commodities.
It comes a day after Capital Economics said the first quarter drop in house prices means they have fallen by more than during the Great Depression.
‘Interest rates are amazingly low. We’re on the verge of a great, great depression. The (Federal Reserve) knows it’
Peter Yastrow
Yastrow Origer
Treasury bond yields fell to their lowest level since December as traders put a higher value on safer investments.
The yield on the benchmark 10-year Treasury bond fell to 2.95 per cent.
Doubts about the economy's strength that built throughout May were compounded by a pair of reports weaker than investors expected.
The ISM's manufacturing index fell to 53.5 in May from 60.4 in
However private employers added just 38,000 jobs in May, down from 177,000 in April, according to payroll processor ADP.
Analysts had expected 180,000 new jobs, so it is another major blow.
‘It looks like this recovery has hit its second "soft patch", which for a recovery that is less than two years old is troubling'
Paul Ashworth
Capital Economics
Stock losses came across the market, with all 10 industry groups that make up the Standard and Poor's 500 index losing ground.
Companies that have benefited from expectations of worldwide growth were especially hard hit - such as Caterpillar, Alcoa, and Boeing.
Meanwhile, one leading lawmaker today accused Mr Obama of distorting a GOP Medicare proposal at the centre of the partisan divide over spending.
The White House made clear Mr Obama is still sure Representative Paul Ryan's plan to send future Medicare recipients into the private insurance marketplace will ‘end Medicare as we know it’.
But Mr Ryan said: 'It's been misdescribed by the president and many others and so we simply described to him precisely what it is we've been proposing so that he hears from us how our proposal works so that in the future he won't mischaracterise it.'
The GOP sought to build pressure on Mr Obama for trillions in spending cuts in exchange for any increase in the government's ability to borrow.
'Any day Republicans and Democrats are actually having a dialogue, this is a good thing, said Republican Representative Jeb Hensarling of Texas.
A meeting seemed to amount to a face-to-face recitation of each side's positions, but no breakthrough on how to reach a debt-reduction deal.
House Speaker Republican John Boehner said: ‘I told the President, one more time, this is the moment.
‘This is the window of opportunity where we can deal with this on our terms. We can work together and solve this problem. We know what the problems are. Let's not kick the can down the road one more time.’
The talks came as an August 2 deadline approaches for the federal government to raise the debt limit or go into unprecedented default.
...How about all those "green jobs" Obam'rs been creating via regulatory extortion?
It's about manufacturing and agriculture, people...
...wake the fuck up.
You're the sucker if you've been standing on the sidelines.
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