Manufacturing Data Triggers Market Train Wreck

[usmcstinger]

Next week's forecasted fourth-quarter 3% GDP growth rate might lift spirits some, but first-quarter pressures continue to intensify. It looks like an extension of the expanded unemployment benefits program is not going to get off the ground, leaving 1.3 million former participants without benefits in January. Decreased food stamp benefits that began in November, affecting more than 40 million participants, have not been reversed yet, either. Higher health insurance premiums and deductibles will also weigh on 2014 results.
Morningstar ? Independent Investment Research

Other Factors Lowering our Growth
Why Housing Won't Help in 2014

Obamacare, job killing Business Regulations and POTUS's use of the flawed Keynesian Economic Theory have converged to make a slow economy even slower.

 

[Avorysuds]

And the fact that the FED-R said they would be tapering the non stop monthly stimulus starting next month.... that was 3 weeks or so ago.

The markets will probably be bobbing up and down if the cuts happen and continue. The fake economy floated by a never ending stimulus made possible by mass deficits could be a real issue going forward.

That shrinking of the annual debt could swell back up if the trillion + in spending is not there to be taxed.

 

[Rozman]

Yup like the Democrats and Obama say....
The economy is doing just fine.

 

[SteadyMercury]

Yup like the Democrats and Obama say....
The economy is doing just fine.

Ahh the partisan dumbass.... when the stock market does well they scream it isn't an indicator of the economy, when it does poorly they scream see it is proof the economy sucks.

 

[jwoodie]

Yup like the Democrats and Obama say....
The economy is doing just fine.

Ahh the partisan dumbass.... when the stock market does well they scream it isn't an indicator of the economy, when it does poorly they scream see it is proof the economy sucks.

Go back to the Politics Forum.

 

[william the wie]

Yup like the Democrats and Obama say....
The economy is doing just fine.

Ahh the partisan dumbass.... when the stock market does well they scream it isn't an indicator of the economy, when it does poorly they scream see it is proof the economy sucks.

I agree on mistargeting but the Chinese economy and Eurozone economy do in fact suck and there will be spillover into the US. That spillover is the current continuing decline in Asia as I type is one of those spillovers. The US sideeffects will be blamed on the Ds and the ACA in particular.

If you want to say China has a cumulative $25-50 trillion in malinvestment and that EU and the Eurozone in particular are trying to combat what they claim to be a worldwide problem, AGW, with a regional solution that is causing the current train wreck I will heartily concur. But when the third largest and largest economies in the world respectively commit economic suicide the US as second largest economy in the world will be hurt. And the party in power and its least popular program will be blamed. That is how the system works.

The Chinese leadership is attempting to get all of its bad news out of the way in their first 2 years of their 10 year term of office before increasing productivity in the US causes China to bleed jobs. What the EU and ECB is trying to do is not at all clear. Any political entity that fears cheaper NG and oil from normalized relations with Iran may set off a deflationary spiral in their own area of responsibility and then pushes for normalization with Iran to get that result is beyond my powers of analysis.

So yeah the trainwreck has started and I don't see any stopping point, at least no obvious and immediate one.

 

[realinvestment]

Down 326 points today on the Dow, we are in dangerous territory. I suspect the selling will continue for a few weeks....after that we will have to see if there is any good reason for the bearishness.

 

[william the wie]

That's why I try to stay hedged both ways.