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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (71182)	11/13/2007 1:29:09 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

British Analysts: Recession is on in the US plenglish.com London, Nov 13 (Prensa Latina) British analysts believe recession has started for the United States economy, according to sources cited by economic newsletter Money Morning, based in this capital. Evidence of the above is the credit crisis, the housing market collapse, the free fall of the dollar and lower consumer confidence index that has set the trend for the North American economy. Mainstream commentators are still reluctant to admit it, but there's a very strong chance that the US economy is set to go into reverse. The final three months of this year could well go down in history as marking the beginning of the next US recession. Recent data shows that wholesale inventories rose 0.8% in September, far more than the 0.2% that analysts had been expecting. That could be bad news for growth this quarter. Companies will have more stock to sell, which means they won't be ordering as much from manufacturers in the coming months. As Reuters puts it, usually an inventory build-up like this is seen as a temporary problem that the US can soon sort out. "But with consumer confidence sliding and recession fears mounting, this inventory spike raises questions about demand," says the British news agency. The Institute for Supply Management's survey for October suggested that customer inventory levels were at their highest since January 2001, which was two months before the US's last recession begun. Meanwhile, according to research group Retail Metrics, 70% of retail chains saw weaker-than-expected October sales. With consumption slowing, and shops ordering fewer goods, David Rosenberg at Merrill Lynch reckons that GDP for the fourth quarter could come in "perilously close to flat, or even negative." Of course, this isn't great news for the US. But it could be very bad news for the rest of us too, says Money Morning. The worse the state of the US economy, the worse the outlook for the dollar, it recalls.

To: Chispas who wrote (71182)	11/14/2007 10:21:17 AM
From: Chispas	Read Replies (1) \| Respond to of 116555

"Readers Who 'Get it'", today's Urban Survival - .......................................................... "Let me get something straight here. We find ourselves in the midst of a major financial meltdown, because of what? Because the Banksters created a lot of money out of thin air, in the form of debt and gave this "air created" money (as a loan) to borrowers to purchase an inflatedly priced home. The banksters then wrote this debt, that was created from nothing, into a ledger and called it a bank asset--yet it's still represents money that was created out of thin air. The banksters then bundled these "out of thin air" created "assets" together with other similarly created "assets" and gave these bundled assets some fancy names, such as "High Grade Structured Credit Enhanced Leverage Fund" so they could be sold to others. Now, the people that received the original money are having difficulty meeting the strict payback requirements of their air created loans because buried within the loan's contracts are clauses that allow for the Banksters to increase the interest at times on this debt that started out as nothing more than air. And, since many of the people are walking away from this money the banksters created that was given to them as debt, the banksters, and those that bought these fancy named, bundled "assets" that were created out of thin air are crying. Why are they crying? Because they are finding their "assets," that were created out of thin air are worth as much as... um... air. So, this real estate balloon was inflated by air (created money). Everyone knows what happens when too much air is put into a balloon. The air eventually releases very rapidly with a popping sound. Doesn't the same thing happen when air is used to create a housing balloon?" .......................................................... urbansurvival.com