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Core Durable Orders Drop Most Since Polar Vortex, Core CapEx Lowest Since May
If yesterday the BEA provided the sugar high for Q3, with a GDP number that will be soon revised lower, then today's economic barage has so far been a disaster, with both Initial Claims, Personal Income and Spending, and now core Durable goods and capital goods shipments and orders missing across the board.
While the headline Durable Goods number printed up 0.4%...
... this was entirely thanks to the usual volatile filler: transports. Excluding these, the Durable Goods ex-transports number dropped by a whopping -0.9%, far below the 0.5% increase expected, and the biggest drop since the December -1.8% tumble which was blamed on the Polar Vortex. It is unclear what the October tumble will be blamed on: the Ebola scare? The Bullard Bottom?
Worse, the long-awaited CapEx recovery will not be materializing one more month, after Non-defense Capital Goods orders ex-aircraft declined for a second month in a row, dropping -1.3%, the same drop as the previous month, suggesting that - as everyone knows by now - companies will be far more focused on spending on buybacks than on capex for quarters to come. In fact, the number was bad, at only $71.2 billion in orders, this was the lowest print since May.
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Not a good sign following the blizzards of last summer.
When's the next election? No moar bogus reports till then.....besides Barry's checkout now
Which Polar Vortex? The one last winter or the one last week?
When your only excuse is the weather everything starts looking like a Polar Vortex.
Antarctic sea ice MUCH THICKER THAN PREVIOUSLY THOUGHT (duh-oh)
http://iceagenow.info/2014/11/antarctic-sea-ice-thicker-previously-thought/
Americans won't notice the bad numbers with the Holiday on their mind. Still the fact remains the economy is mired in problems. As the stock market continues to remain at historic highs please tell me what is so good? What is so much better?
As I see it the weight of carrying a large number of unemployed and people who have dropped out of the work force is wearing society down through attrition. The article below points out some of the glaring flaws in the argument that blue sky lies ahead as the stock market seems to indicate. As I look at a landscape of empty and under-leased buildings that once housed thriving businesses that provided Americans with good paying jobs I'm forced to ask, How are things getting better?
http://brucewilds.blogspot.com/2014/10/tell-me-again-how-things-are-getting.html
Do you really think it is society carrying the weight that of the unemployed that has worn it down? Or is it more like fewer people working on payroll, and paying taxes, that has left those budgets in such trouble?
In other words, is our society in trouble because it is 'taking care' of too many, or because not enough are taking care of society? Is it their benevolence causing their downfall, or is it their dependence on other people's money?
this too is bullish
QE 4 coming
Quick, call the BLS. I slipped and fell on some ice this morning. That should be good for a -0.2 GDP reduction for Q414.
<BTW that Gold spike to $1,400+ yesterday was caused by me counting my stash. Sorry bro. Won't happen again.>
<BTW that Gold spike to $1,400+ yesterday was caused by me counting my stash. Sorry bro. Won't happen again.>
Dammit.....please stop doing that!
WhoCouldDaKnowed fondling my Gold Doubloons and Silver Pieces of Eight would have had such a dramatic effect upon the price of paper PM's?
Wow, this is serious. The S&P futures are down a point as we speak.
That does seem to give us a serious advantage- why worry about the future? We could all be dead by then -giant solar flare, alien invasion, Fukishima blowup- The possibilities are endless.
Carpe Diem -
Just love it when everything goes to PLAN. China and Russia have 5/10 year Plans; The West 5/10 day Plans.
Jim Cantore, Pick up line 1
A large order of windows and wigs should do the trick.
The patient is getting sicker. Quick, more of the same medicine!
Coked up bankster recession on tap? Nope. Short pullback until big weekend shipping spree for "consumer goods" like pm! More war is their answer, of course. Banksters forced to be with their wives for days! The horror!