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

To: mishedlo who wrote (88987)	10/23/2008 9:13:37 PM
From: Chispas	Respond to of 116555

"Is there anything worse than seeing a rising cost of capital in a slowing economy?" apnews.myway.com

To: mishedlo who wrote (88987)	10/23/2008 10:18:57 PM
From: ajtj99	Respond to of 116555

The reports I've read suggest a best case scenario of 27,000 of 49,000 jobs going away at Chrysler if it merges with Ghosen's group. The worst case is 30,000 jobs lost if it merges with GM. Either way, we're looking at October auto sales at a seasonally adjusted rate of about 11-million/year, likely the lowest since the 70's when the population was 20% lower. You'd probably have to go to the 60's to find a lower per capita auto sales rate. On a positive note, cooking oil is coming down in price at the grocery aisle as lower commodity prices are starting to filter through the system. It's down to around 3.99/48-oz for name brand stuff and $2.99/48-oz. for store brand stuff, down $1.00 for each from summer prices. Flour is dropping a bit as well. We should see the lower food prices manifested en-masse in the grocery aisle in Feb-April, IMO. The Fed is almost out of bullets, and this is going to get real scary come 2010 when they have nothing left to use. It's hard to hold up a credit bubble when it's deflating by $14-trillion over 4-years.