This page has been archived and commenting is disabled.
Five Charts Showing the US is Back in Recession
The US economy is veering towards recession.
The ”official” GDP growth number is so heavily massaged that it borders on fiction. So as far as economic growth goes, if you want a clear picture, you need to look at nominal GDP growth. The reason for this is that because the Fed greatly understates inflation, the official GDP numbers are horribly inaccurate.
By using nominal GDP measures, you remove the Feds’ phony deflator metric. With that in mind, consider the year over year change in nominal GDP that has occurred.
Historically, anytime the chart drops to 4, the US has been in recession. It’s been around this number ever since the recession “ended” in 2009. Small wonder this “recovery” feels like a recession to most Americans.
However, even in this weak climate, we are getting signs that the US economy is rolling over.
Consider the recent rejections of credit applications data:
Then there is the collapse in corporate profits. (h/t Societe General)
Indeed, annual corporate profits fell in 2014. The last time profits fell like this was in 2008, when the US was already in recession.
We also have the Regional Manufacturing Surveys and Dallas Fed Inventory (both H/T Not Jim Cramer) hitting levels associated with recessions.
Numerous data points are showing the economy is approaching if not already in recession. And yet stocks are pricing in economic perfection. By the time they catch on… we’ll see a serious market correction.
If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.
You can pick up a FREE copy at:
http://www.phoenixcapitalmarketing.com/roundtwo.html
Best Regards
Phoenix Capital Research
- advertisements -
Never left except in the minds of the left.
I've been reading about this collapse from Phoenix capital for 2.5 years now......LOL.....NOt happening???
"By the time they catch on… we’ll see a serious market correction"
no we wont. the market wont go down because it wont be allowed to. Hasnt Phoenix Capital been reading ZH expose's on how the market 'declares self help' whenever a sell off looks like its gathering steam.
The gears of industry will have ground to a halt, the apparatus rusted, turned to powder and subsumed into the earths crust before they will allow the stock market to crash.
look at the venezuelan and zimbabwean stock markets. These are your parallels.
Stop contributing to the false meme that stock prices are indicative of anything to do with the health of the economy
Check out this poor little seal….so sick of the ocean pollution, this is the second time he was crawling on the streets in a sad attempt to leave the ocean. Crawling on the street.
http://nukeprofessional.blogspot.com/2015/05/shark-attacks-and-deaths-in-hawaii.html