Folks, WE ARE IN A SPIN LOOP AND ARE CRASHING ECONOMICALLY.

[Neubarth]

This mornings economic headlines are just like all the others lately.

Dow Chemical revenues slide; company cuts spending

Dow Chemical revenues tumble and company is not counting on improving conditions for 2010.

Reports like this are happening all across the country. Spending cuts have the final result of millions of more unemployed. They, in turn, reduce their buying because they are living off of Unemployment Insurance. Because of their lack of spending other companies are hurt and they cut employment.

In computer language they have a term called a SPIN LOOP. That means one thing is causing another thing to happen which causes another thing to happen that causes the first thing to happen. SPIN LOOPS can cause the entire computer to CRASH!

What we have here is a SPIN LOOP in the economy. It is causing the entire economy to CRASH!

So far the Obama administration has done nothing about the Spin Loop and the consequence is that the economy is slowly being destroyed.

 

[California Girl]

*Hits 'sarcasm on' button*


Don't Panic. Everything is fine, the POTUS has it all under control.

*'sarcasm ends*

 

[Sunni Man]

Our ZOG government will eventually straighten out the economy.

It is in their interest to keep American's working.

 

[The Rabbi]

McDonald's sees profit climb 6 pct - Yahoo! News

Reynolds American 3Q profit jumps 72 percent - Yahoo! News

Yeah, it sure looks like disaster with blood in the streets. Too bad no one has told the wall st traders this.

 

[Midnight Marauder]

McDonald's sees profit climb 6 pct - Yahoo! News

Reynolds American 3Q profit jumps 72 percent - Yahoo! News

Yeah, it sure looks like disaster with blood in the streets. Too bad no one has told the wall st traders this.

New unemployment claims worse than expected this morning:

Unemployment Claims Rise 11,000 | Forex District

Stock futures weaker:

UPDATE: BEFORE THE BELL: US Stocks Futures Weaker - WSJ.com

Retail sales down:

US ECON: September Retail Sales Down 1.5%, Up 0.5% Ex-Autos - Forbes.com

Yup, it's all roses!

 

[Neubarth]

McDonald's sees profit climb 6 pct - Yahoo! News

Reynolds American 3Q profit jumps 72 percent - Yahoo! News

Yeah, it sure looks like disaster with blood in the streets. Too bad no one has told the wall st traders this.

Oh learned man of the sacred texts, you are out of touch with reality. A few exceptions to the norm do not a recovery make. The average Wall Street Stock has lost 80 percent of their earnings from two years ago. THAT is a Severe Depression.

 

[Neubarth]

Globally, shipping is falling and falling and falling. Product is simply not being shipped.

Cantor Fitzgerald cut both Tsakos Energy (TNP) (Hold from Buy) and Overseas Shipholding (OSG) (Sell from Hold).

 

[Douger]

Man ! Thanks for telling us ?
How did you know ?

 

[Neubarth]

Housing prices forecast to fall in 2010 -- and could keep falling for years
Charles Hugh SmithCharles Hugh Smith RSS Feed
Oct 21st 2009 at 8:30AM



Fiserv, a financial information and analysis firm, is forecasting that national median home prices will fall 11.3 percent by summer 2010. The recent surge in home sales and new homes under construction have launched a feeding frenzy in the hardest hit Sunbelt and California markets as investors believe "the bottom is in." The Fiserv forecast -- and the fundamentals of supply and demand -- are throwing cold water on that confident enthusiasm.

Foreclosures are still rising as defaults rise in prime mortgages, which were once viewed as immune to the high defaults hitting subprime loans. As I have reported here before, the foreclosure pipeline -- not just homes that have been foreclosed, but those in default -- is bulging.

Banks are holding foreclosed and distressed properties off the market, hoping to sell them in a stronger economy. This stock of homes is called the "shadow inventory" because lenders have numerous ways to hide how many loans are in arrears and how many homes are foreclosed but not listed on the market.

 

[Neubarth]

Man ! Thanks for telling us ?
How did you know ?

Well, podner I came out of retirement and took a job early last year because I knew we were going to fall into Depression. I had retired in late 2000 (52 years old) and was living off of my investments when it became all too obvious that we had three bubbles going at the same time. Housing, stocks and credit. Told my wife that we were due for a massive collapse that would have to lead to Depression. At my age in 2008 (60), nobody would hire me or even interview me until I landed a position 500 miles away from home. I took the job for a year and watched as the economy went to hell in a handbasket. I have subsequently re-retired and am living at home in San Diego as I watch the Spin Loop unfold. I expect that I will go back to work again, but I have enjoyed the last few months off.

 

[The Rabbi]

Yeah it's all doom and gloom. SOmeone needs to tell these folks:
Leading economic indicators rise again in Sept. - Yahoo! News

People are pointing to the lagging indicators, like employment. Or non indicators like what the market is doing today. Yes there are conflicting signals but there weren't a year ago.

 

[ProudFossil]

So if we are crashing and burning, why is the stock market up again today (another $53 at 11:00)? I am beginning to think some extremists in the MSM are lying about the bad numbers, i.e., unemployment, forclosures, bankruptcies, etc., etc, in order to sell their newspapers or get viewers. I do not believe those numbers any more. The experts on Wall Street can see through all this negative balderdash and are reacting to the positive growth going on in the country.

 

[Neubarth]

Yeah it's all doom and gloom. SOmeone needs to tell these folks:
Leading economic indicators rise again in Sept. - Yahoo! News

People are pointing to the lagging indicators, like employment. Or non indicators like what the market is doing today. Yes there are conflicting signals but there weren't a year ago.

Do you have any idea how stupid your post and link is? I mean we are talking idiotic to the max!

LEI is mainly an index of how the Stock Market did in the reporting period.

Because the stock market went up, the LEI report went up. When the stock market goes down, guess what? Yep, the LEI goes down.

Retail Sales, Durable Goods Orders, Industrial Production, Mass Layoff projections, Forced Furloughs, and Unemployment Insurance Claims are the real indicators of what is happening, NOT THE STOCK MARKET you silly old man. I am assuming that you posted that for humorous effect.

 

[Neubarth]

so if we are crashing and burning, why is the stock market up again today (another $53 at 11:00)? I am beginning to think some extremists in the msm are lying about the bad numbers, i.e., unemployment, forclosures, bankruptcies, etc., etc, in order to sell their newspapers or get viewers. I do not believe those numbers any more. The experts on wall street can see through all this negative balderdash and are reacting to the positive growth going on in the country.

excellent sarcasm!

 

[The Rabbi]

Yeah it's all doom and gloom. SOmeone needs to tell these folks:
Leading economic indicators rise again in Sept. - Yahoo! News

People are pointing to the lagging indicators, like employment. Or non indicators like what the market is doing today. Yes there are conflicting signals but there weren't a year ago.

Do you have any idea how stupid your post and link is? I mean we are talking idiotic to the max!

LEI is mainly an index of how the Stock Market did in the reporting period.

Because the stock market went up, the LEI report went up. When the stock market goes down, guess what? Yep, the LEI goes down.

Retail Sales, Durable Goods Orders, Industrial Production, Mass Layoff projections, Forced Furloughs, and Unemployment Insurance Claims are the real indicators of what is happening, NOT THE STOCK MARKET you silly old man. I am assuming that you posted that for humorous effect.

Three of those measures are labor related and thus lagging. The stock market is a leading predictor.
We will see what durable goods orders look like for Sep in a few days. I suspect a surprise on the upside.

 

[ProudFossil]

Hey Neubarth, who is being sarcastic? My portfolio has recovered about 75% of the loss from the crash last year. Let's hope it keeps going.

 

[Neubarth]

Hey Neubarth, who is being sarcastic? My portfolio has recovered about 75% of the loss from the crash last year. Let's hope it keeps going.

Be aware that the economy is still tanking. Look at Retail Sales, Durable Good Orders, Industrial Production, Initial Claims for Unemployment, and Mass Layoffs or Furloughs to see what is really happening with the economy.

Stocks right now are over valued by a factor of four or five, and are due for a massive correction.

 

[Neubarth]

[ame=http://www.youtube.com/watch?v=efuepuPb2u8]YouTube - Gerald Celente-Their is NO Economic Recovery-Its A COVERUP[/ame]

 

[DonKayrouz]

well my portfolio recovered 40%
don't overgeneralize

 

[Neubarth]

well my portfolio recovered 40%
don't overgeneralize

Stock market performance is totally divorced from the economy as of late. There is no economic recovery, even if stocks have gone up.

Case in point, Microsoft which is losing revenue and earnings faster than any other company. Today they announced: "SEATTLE (AP) -- Microsoft Corp. said Friday its net income fell 18 percent in the last quarter." AND THE SHARES SOARED IN PRICE, UP TEN PERCENT AT THE OPEN.

The P/E is twice what it should be, but people do not seem to be concerned. They have to buy because MSFT said that they might have their revenue stop falling some time in the near future. Don't bet on it.