Industrial Production Drops; Auto Manufacturing Slumps 3rd Month In A Row - Worst Run In 5 Years

Tyler Durden's picture

Driven by a combination of Mining (-0.9% - biggest drop in a year), Utilities (-0.7% led by a 3.2% plunge in Natural Gas) and most of all motor vehicle manufacturing (-1.2%), US Industrial Production slid 0.1% in October (notably missing expectations of a 0.2% rise). This is the 3rd monthly drop in motor vehicle & parts production - the worst consecutive run since Jan 2009. It seems the government-free-credit inspired subprime auto boom that provided just enough impetus to a fragilee conomy to enable the Fed narrative of "things are better" to play out... has ended... abruptly.

 

Industrial Production drops, missing notably.

 

Worst auto production run since Jan 09

 

 

Charts: Bloomberg

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ekm1's picture

How many times do I have to repeat that QE was designed to harm the economy and it achieved the goal

 

There was no other way to bail out insolvent bank lobby oligarchs and Warren Buffett who used to own congress and still own the white house

LawsofPhysics's picture

so how much longer until the MIC oligarchs start putting "bullets in heads"?

 

WTF ekm1?

ekm1's picture

No bullets. Surrender is under way, in my view

LawsofPhysics's picture

What exactly are the useless paper-pushers "surrendering"?  Surrender does not put food on veteran's tables.  Unless real assets are being surrendered nothing changes and your creditbility is what it is...

I imagine that the commodity extraction/production companies are going to want a piece of the action as well.  Should the flow of energy slow, the world's quality of life goes off a cliff in a hurry.

JamesBond's picture

fuck the US auto manufactoring industry and the monstrous middle man purchasing system they created and support.

 

 

 

GetZeeGold's picture

 

 

Clearly we need amnesty.....it's the one thing Obama and the Chamber of Commence can agree on.

 

It's gonna screw you....but they seem to like the idea.

LawsofPhysics's picture

Sharecropping will benefit, so there's that...

Triggernometry's picture

Just don't call it a recession yo...

TruthInSunshine's picture

A McChicken Filet in every pot, GM Obamobile in every garage, and ACA "doctor" on every speed dial.

ekm1's picture

Saudis are forcing surrender of oil assets, that is what I see

papaswamp's picture

Bullshitish? ( its like a smelly version of Bullish, but for the garden).

WTFRLY's picture

Forecasts show an increased chance of hot air in the coming weeks papaswamp

LawsofPhysics's picture

Bailouts for everyone!!!

/s

sharpen those guillotines folks, the paperpushers on wall street and D.C. have stolen all the real assets (again)....

NoDebt's picture

@EKM

"How many times do I have to repeat that...."

I don't know.  If you stop repeating it every time you post, I'll give you an up-to-date count.

You're not the only person who's said a few right things on ZH.  That QE was never designed to "help the economy" is not exactly deep insight around here.

NoDebt's picture

So they tell me.  Never tried it myself.

KnuckleDragger-X's picture

The problem with being a pessimist is I'm right more times than I'm wrong......

Dr. Engali's picture

Dupe, stoopid internet.

Creepy A. Cracker's picture

Bullish...

</s>

"...notably missing expectations of a 0.2% rise"  Who are these morons who's "expectations" are wrong 90 - 100 percent of the time?  Is there a line that can played simply betting against their expectations?

Unstable Condition's picture

Damn that bad weather!

deeply indebted's picture

Hope it doesn't get cold this winter..

post turtle saver's picture

new vehicles cost too much anyway... why keep making them if no one is buying them... hint, if you need anywhere from US$9k to $12k end of year incentives to get people to buy, maybe you'd have better luck if you just priced them $9k to $12k cheaper to begin with...

there's no reason whatsoever that regular cab, short box half-ton pickup trucks should start off at around US$27k MSRP... that's insanity... if there's anything in need of a correction, new vehicle pricing comes immediately to mind...

woody188's picture

Right, wasn't that the excuse used during the GM bail-out? They had to get rid of all the pensioners so they could price their vehicles competitively. But they never did reprice, just pocketed the savings as management bonuses. Same as it ever was.

Navymugsy's picture

How did I know the economy was at a tipping point? The adjective "subprime" came back into widespread usage.

orangegeek's picture

MOAR SHAYER BYE BAX!!!!

anachronism's picture

This information is not good news; but it is not that bad either. The problem is that, along with America's, the economies of Europe and China and Japan have all stalled. And let's not forget oil-exporting countries, which are declining. America is the "cleanest dirty shirt' so to speak.

If the world's economies are going to get going again something big has to happen. Let us hit the "Reset" button.

I suggest that it is time for a biblical jubilee: widespread cancellation of debt for all those whose liabilities exceed their tangible net worth. Revolutionary, I know. Communist? Well, up to a point, yes.

In conjunction, the Federal government should stop issuing debt and just print money, letting our deficit spending flow directly into dollar depreciation.

LawsofPhysics's picture

Bullshit.  If you are going to "forgive debt"  forgive the same amount of debt to all those that have debt and have been current on debt payments.  Stop rewarding BAD BEHAVIOR!!!!!

The issue is also inequality due to failed central planning that market manipulation.

Either do this or you still run the risk of real retribution.

anachronism's picture

Think this through a bit more. Not all debt is the same; and some debts should not be cancelled.

The very wealthy and the very astute use debt all the time as leverage to make even more money. However, being astute and wealthy, the amount of debt that they use to create more wealth is kept well below their tangible net worth. Forgivimg this kind of "working capital" debt is simply unnecessary.

Public Corporations have made it a common practice to use debt to buy out competition or to buy out positions of their shareholders. Cancelling such debt would be wrong.

Furthermore, if debt cancellation threatens the lender's net worth, then enough of their debt should be cancelled in order for their net worth to remain postive.

Many ordinary people have mortgages, which represent a fraction of the value of their properties. They have a liability to pay interest, taxes, insurance, and principal in order to retain their ownership of these properties. If fixed expenses exceed their income, debt or terms of payment should be adjusted in order to mainatin a positive net worth.

Regardless of who or what you want to blame for the economic trap in which most people and nations are now caught, they are still trapped. Something dramatic must be done.

Once debt cancellation has occurred, lenders should be loathe to lend. Rather, they should become investors. The capital acquired for business and wealth-creating purposes should be equity not debt. Mortgage companies would become co-owners of our homes until they were bought out or the homes were sold. I believe that this is the custom in Islamic countries. I also observed something like this when I lived in Japan and Korea, albeit done informally among members of a close knit community.

forwardho's picture

Understand, and have no doubt, that on the big balance sheet of .gov, You are nothing more than an unfunded liability.

 

FreeShitter's picture

But that new Shelby GT350 though

arrowrod's picture

Where did these numbers come from?

 

I don't believe them...

starman's picture

It's the cold spell on the east coast and midwest.

Ewtman's picture

World leaders are just beginning to acknowledge that the global economy is in serious trouble. David Cameron is the first to express concern, the rest will follow suit soon. It is no longer possible to deny that deflation has its grips on the economic throats of the world.

 

http://www.globaldeflationnews.com/world-leaders-are-just-beginning-to-a...