Disappointing Richmond Fed And New Home Sales Seal The Recessionary Deal

Tyler Durden's picture

And so the double dip confirmation resumes, with the Richmond Fed printing at -10, the lowest since June 2009, well below consensus of -5, a collapse from June's -1, and the lowest since June 2009. From the report: "In August, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — declined nine points to -10 from July's reading of -1. Among the index's components, shipments lost sixteen points to -17, and new orders dropped six points to finish at -11, while the jobs index inched down three points to 1." And more: "Other indicators also suggested additional softening. The index for capacity utilization declined eight points to -14 and the backlogs of orders fell seven points to end at -25. Additionally, the delivery times index moved down twelve points to end at -4, while our gauges for inventories were virtually unchanged in August. The finished goods inventory index held steady at 17 in August, while the raw materials inventories index added one point to finish at 19." And the final nail in the economic coffin was New Home Sales which came at 298K, down from 312K upward revised prior, and missing the consensus of 310k: the lowest in 5 months. "Housing data over the past three months indicates that there is little appetite in the consumer sector to take on the risk of purchasing a home at a time when prices are likely to decline further,’’ says Bloomberg economist Joseph Brusuelas. As Bank Of America (RIP) said yesterday, one false word out of Beranke on Friday, and we will see what could possibly be the most epic market crash ever. For those wondering why stocks surged on this horrible news: look no further than the central planners in the Marriner Eccles building who are now expected to do "the right thing" for stocks.

Richmond Fed:

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Iriestx's picture

Apparently these numbers are very bulllish for equities.

Dreadker's picture

I know right... fricking ridiculous... My guess is its 'Priced In'.... bad news... "priced in".... global war "priced in"... 2012 mayan prophecy "priced in"...


Basically "priced in" is the markets "I plead the 5th!" lol

midtowng's picture

What is getting priced in is QE3.

Cognitive Dissonance's picture

There are gonna be some very blue balls if Bernanke doesn't roll out QE 3+ on Friday.

Just sayin'

(Not that I would know anything about that.)

firstdivision's picture

Don't worry. If it is not announced on Friday, it will be announced by Asia open on Sunday when markets gap down 10+%.

snowball777's picture

Pantone needs better descriptors...like "Oh my God it hurts, baby, please" Blue.

DOT's picture

The most interesting colors are yet to come.

TruthInSunshine's picture




Economy is in a depression.

Real UE is 20%+

GDP is probably running at -4% to -5% YoY rate (soon to be running at -7%+).

Housing sales are at an ALL TIME LOW with this 'recovery' melting down like Fukushima: 

The banking-financial and equity markets are about to enter a WORSE crisis than what we saw in 2008.

And the developed nations are trying to dig themselves out of a very deep hole by pissing upwardly (with China not knowing what to do in the face of the crises they face).


It's all about jobs, wages and the middle class, and ObaMao, Jeetner, Bernankstain and CONgress can't do anything about J-O-B-S when the multinationals own the globe (because they, with their european counterparts, gave the multinationals the keys to the joint).


TheJudge2012's picture

Do they fall on the announcement?

Long-John-Silver's picture

QE to infinity and beyond Bitchez!

freethinker4now's picture

and to top it all off, the "priced in" has yet to be priced in, so expect the bulls to be out in force??? :|

White.Star.Line's picture

These numbers are very bullish for future monetization.

Doode's picture

No, they are just sure that QE is coming on Friday.

Sudden Debt's picture

looks like it for sure.

this bad house news was the best news they could dream of to assure the comming QE launch.

When does Obama come back from his vacation?

BeatTheMarket's picture

but , if equities keep going up... then is QE3 needed???

Anonymouse's picture

It's like the old "Star Trek" sure-fire method for defeating a computer.  "This statement is a lie" will cause an infinite contradictory loop, causing computer circuits to over-heat.

The economy is down  --> QE3  --> anticipatory increase in stocks -->  QE3 not needed --> stocks go down -->  We need QE3 --> anticipatory increase in stocks --> QE 3 not needed --> stocks go down  --> etc.

Hmmm, perhaps we have found a way to defeat HFTs.

John Law Lives's picture

Terrible data.  That must be the reason for the 100+ spike in the DJIA.  The mindless bots are anticipating QE3 to the rescue.

100% FUBAR!

SheepDog-One's picture

Markets have priced in QE3 at least 10 times over since January on every piece of horrible news....this is just ridiculous.

JH QE event will fall FAR short of these pie in the sky expectations of these insane market bakers.

But GO AHEAD Ben! Throw QE3 in! LOVE to see the dollar totaly collapse and gold get a 20% add-on! 

Everyone forget we just got downgraded over insane debt and insane fiscal policy? 

Rock on, lunatics....rock on!

RSloane's picture

Yup they are. And Bernanke will deliver.

Quintus's picture

Somebody needs to tell the stock market, which seems to be pricing in a wonderful recovery.  Or more printing.


midtowng's picture

The economy in general no longer matters to Wall Street. Only more printing.

Central Wanker's picture

Weird reaction in the market, indeed...

Stock market may be pricing in more printing, but gold is not acting similarly right now. Did gold price QE3 in already earlier or is FED bying stocks?

TruthInSunshine's picture




The Repression of The Bernank, bitchez!

Ben Bernank & Timmmmay Geeeeithner gave trillions to the Wall Street Elite and all we got was a looming Economic Depression.

Give them trillions more, The Bernank! Central planning FTMFL!!!

alexwest's picture


actually  will say : GUYS, YOU'RE  ON YOU OWN..





SheepDog-One's picture

YEP! I think everyone that has QE3 trillions safely baked in and ready for equity liftoff are about as silly as Robotrader with his calls to get all in at DOW 12,700 for debt ceiling passage market euphoria!

Ben of Friday...'Boys...Yer on yer own'.

Iriestx's picture

And yet the headlines read, "Wall Street Surges On Positive Economic Data"

carbonmutant's picture

“Both consumers and professionals are vaccinated against bad housing news,” said Sandy Lincoln, chief market strategist at BMO Asset Management U.S" 


slaughterer's picture

QE3 got upped to 800billion in today's morning session at Jackson Hole.  The mood was somber. 

SheepDog-One's picture

800 billion? Huge dissapointment. QE3 would have to top at least $2 trillion to impress anyone at all. 

Doode's picture

Treasonous if they do another QE - let the markets work!!!!

slaughterer's picture

Perry, Bachmann, and all the rest do not matter--the Fed needs to stabilize markets and fulfil its dual mandate.  QE3.  Hold on to your gold. 

SheepDog-One's picture

QE3 of what though? Since 'QE3' has been priced in on every bit of bad news since January and sub-DOW 10K, I'd say QE3 has to be at least around $2.5 trillion to impress anyone at all.

I bet there is no QE, buy buying a bunch more silver today.


oogs66's picture

seems like stupidity to me

cowdiddly's picture

You guys beat me to it. These markets are laughable at this point. Open 200 points higher, throw out a few news bait pieces before the market opens to try to get a few suckers in. Does not work,(No one trusts the MMM anymore) then everyone storms to the exits. LOL

buzzsaw99's picture

the bernank hasn't missed a shipment yet.

vast-dom's picture

<--- QE3 Friday

<--- MArket CRASH Friday


Come on peeps lets all say on Friday my vote right here on Tues predicted this shit!

vast-dom's picture

TD let's get a track record going of 0hedge member's ability to predict heinous market events ;)


PS the split on our little mini-poll is interesting, to say the least. 3 to 1 says market crash Friday Jesus!


Oh well.......

slaughterer's picture

Buy to open the Aug 26th SPY 110 and 108 puts if you want.  Turn on your Bloomie: the volume is surging right now.  Today is obviously discount day for leveraged shorts who do not think QE3 comes on Friday.  I am buying as well, for hedge purposes. 

Sandy15's picture

What a POS video.  So sharia law isn't killing innocent women and children?  What stupid propoganda you posted.  Learn history and realize these are the people wanting to destroy America and Isreal.

Egypt and Lybia is being taken over my muslim terrorist and sharia law.  http://www.theblaze.com/stories/egyptian-protesters-outside-israeli-emba...

W T Effington's picture

You sure do believe a lot of propaganda. Have you ever wondered why it is a relatively recent development in history where muslims want to kill us? How many people have we killed in the name of democracy? How many muslim countries are we occupying?

snowball777's picture

Gee, why might they want to destroy Israel? I mean, isn't Israel a peaceful country that gets along with its neighbors? Have they committed war crimes that might inspire this kind of hatred among Muslims or something?

Reap what you've sown.

Ancona's picture

Apparently, this is bullish. I think I'll run and buy up 10,000 shares of BAC.

Iriestx's picture

The teleprompter says it's your patriotic duty.

Crisismode's picture

Wait until Friday.


You will be able to pick up all you want from the pink sheets.

John Law Lives's picture



Derek Kravitz, AP Real Estate Writer, On Tuesday August 23, 2011, 10:14 am

WASHINGTON (AP) -- The number of people who bought new homes fell for the fourth straight month in July, putting sales on track to finish this year as the worst on records dating back half a century.



How big will QE3 be???


Ancona's picture

That depends of your definition of big.

Beelzebernanke's idea of big is in the trillions.....

SheepDog-One's picture

QE3 wont happen....ZIRP for extended period, and bond maintenance program. No free gift of Hefty bags filled with crack rocks for Wall St. Sorry bulls.