|Posted by Anti-Tyranny News on August 21, 2011 at 2:20 PM|
The bad news about the economy just keeps rolling in. If this is an economic recovery, what in the world is the next "recession" going to look like? Today there was another huge truckload of bad economic news. The stock market had another 400 point "correction", applications for unemployment benefits are up again, inflation is higher than expected, home sales have dropped again and Europe is coming apart at the seams. The financial markets have been in such a state of chaos recently that days like today don't even seem "unusual" anymore. But we should all be alarmed at what is happening. We haven't seen anything quite like this since the darkest days of 2008 and 2009. If more bad news keeps pouring in, we may soon have a very real panic on our hands.
I would have thought that my article yesterday, "20 Signs That The World Could Be Headed For An Economic Apocalypse In 2012", would have contained enough bad economic news to last for a while. But today there was another huge bumper crop of depressing numbers.
Are you ready for the carnage?
*The Dow fell 419 points today. That was a 3.7% drop. The S&P 500 shot down 4.5% and the Nasdaq plummeted by a whopping 5.2%.
*European bank stocks got absolutely hammered.
*The number of Americans applying for unemployment benefits jumped back above 400,000 last week.
*The recent inflation numbers have really taken analysts by surprise. The consumer price index rose at a 6.0% annual rate during the month of July. As I mentioned yesterday, the producer price index in the U.S. has increased at an annual rate of at least 7.0% for the last three months in a row.
So now we have high unemployment and high inflation. Oh goody! All of this stagflation is almost enough to make one nostalgic for the 1970s.
*The housing market is getting even worse. According to the National Association of Realtors, sales of previously owned homes dropped 3.5 percent during July. That was the third decline in the last four months. Sales of previously owned homes are even lagging behind last year's pathetic pace. Mortgage rates are now the lowest they have been since the 1950s, but there are very few interested buyers in the marketplace.
*The Philadelphia Fed's latest survey of regional manufacturing activity was absolutely nightmarish....
The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, decreased from a slightly positive reading of 3.2 in July to -30.7 in August. The index is now at its lowest level since March 2009
*Morgan Stanley now says that the U.S. and Europe are "hovering dangerously close to a recession" and that there is a good chance we could enter one at some point in the next 6 to 12 months.
Categories: Economic News