I know we just got through our second Recover Summer but this feels like something else. Why is that? Well, because it is, that’s why. We’re still sucking air, just with a lot more persistent, long term, depressing unemployment and a LOT more debt.
The Empire State Manufacturing Survey indicates that conditions for New York manufacturers continued to deteriorate in October. The general business conditions index remained negative and, at -.5, was little changed. The new orders index hovered around zero, indicating that orders were flat, while the shipments index rose above zero to 5.3. The inventories index stayed below zero, a sign that inventories declined. The indexes for both prices paid and prices received fell, but remained positive, suggesting that price increases moderated. The index for number of employees rose several points but was at a relatively low level of 3.4, while the average workweek index was negative for a fifth consecutive month. The future general business conditions index dropped six points to 6.7, its lowest level since early 2009, while future indexes for prices paid and prices received declined.
There is utterly nothing to indicate success in “reflating” or “restarting” the economy here. Nothing.
This report is just flat-out terrible, no ifs ands or buts. I wish there was some other way to put this, but there isn’t. What’s worse is that the composite is now sitting just about where it was in 2010 and just before it all went to hell in 2008.
So what we have here is more validation for my beliefs: The Fed delayed but did not avoid the contraction in 2010 with its “QE2”, and in engaging in that program it weakened both itself and the government in general by destroying both’s ability to respond in the future to financial stress.
Now we have the stress in Europe and elsewhere and the economy is falling apart into an environment where the people know they got rooked.
This is not a good situation and of course those in Congress that could have stood up for what’s right rather than what’s politically expedient didn’t do so.
You’re about to get the bill for your stupidity Washington.
H/T Monty over at Ace. He writes a regular column on The Doom that you can read any time you start to feel like Julie Andrews is going to come floating down with an umbrella in ruby slippers while singing in the rain. It will take you right back to Steel Magnolias levels of depression.
And as a bonus, he had the best line on the intertubes yesterday and I’ll share it with you, in case you need a little gallows humor:
Old and busted: “Saved or created.” New hotness: “Supported”. Kind of like a jockstrap — if you can’t be an athlete, be an athletic supporter!
Now that there’s funny, I don’t care who you are. Obama, the
athletic jobs supporter. Bwahahahahaha!
And to make the politics just a bit more depressing: Does this mean President Jobs Supporter can’t get re-elected? Let’s not start scratching each others backs, yet, my pretties. FDR dragged the country through a long decade of Doom and probably would have done so for another 10 years if he hadn’t died. There should be a syndrome named for voters who have it so bad they yet vote for the same program that doomed them. Like Stockholm Syndrome except it would be more like Zimbabwe Syndrome.
Barnum really underestimated the market. And our government school system and the lefty indoctrination system that buries them in debt right after school while providing them with a worthless piece of paper and an in-depth knowledge of Art History makes sure they never escape their birth condition.