Tuesday, August 2, 2011

As Washington celebrates it's debt ceiling farce, the U.S. economy is in deep trouble

As the politicos in Washington all smile for the cameras, and pat each other on the back for pulling off another pathetic exercise in can-kicking, Washington's favorite sport, the U.S economy is showing signs of deep problems ahead.

According Dow Jones ESI indicator there is evidence of a huge US slowdown, a Dow Jones Sentiment Indicator says Return to a Recession is a Real Risk.

It would be easy to blame the dip in the ESI on the U.S. debt crisis, but much of the gloom stems from Main Street rather than Washington,” says Dow Jones Newswires “Money Talks” columnist Alen Mattich. “The readings this summer have fallen enough that it seems to suggest a slide back into recession is a real risk.”

Please see : Recession is "Real Risk" According to Dow Jones ESI Indicator

Also consider :

US GDP on Verge of Contraction in 1st Quarter, Mere 1.3% Annual Rate 2nd Quarter; Summary of Massive Revisions; Second-Half Recovery Nonsense

Does the Deficit Deal Guarantee a Recession?


It's not temporary

Europe is now in austerity-mode, US cities and states are cutting back, the odds of more fiscal stimulus in the US are roughly zero, the US might (and should) lose its AAA rating, Australia is a basket case on the bursting of its property bubble, Canada has the second or third largest property bubble next to China and Australia, the bond market is targeting Italy and Spain, Brazilian defaults are soaring, China is overheating and needs to slow, yet the average economist is looking for a robust second-half, and Obama still tells us he pulled the country back from the abyss.

Yea, right.

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