U.S. Leading Economic Indicators Index Declines 0.8% as Recession Deepens

[Purveyor]

Source: Bloomberg

By Shobhana Chandra

Nov. 20 (Bloomberg) -- The index of leading U.S. economic indicators fell in October for the third time in four months as stocks and consumer confidence plunged, signaling a deepening recession.

The Conference Board's gauge dropped 0.8 percent, more than forecast, after rising 0.1 percent in September, the New York- based group said today. The index points to the direction of the economy over the next three to six months.

Consumers and companies are cutting back as financial markets remain fragile, job losses mount and housing and manufacturing sink deeper into a slump. President-elect Barack Obama and Democrats in Congress are under pressure to push through another economic stimulus plan and give more aid to automakers.

``The economic contraction appears to be worsening,'' said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. ``The stock markets are plunging, people are retrenching and manufacturing activity is virtually falling off a cliff. The increase in layoffs can only worsen the economic downturn in the near term.''

--snip
Another report showed manufacturing in the Philadelphia region shrank in November at the fastest pace in 18 years. The Federal Reserve Bank of Philadelphia's general economic index was minus 39.3 this month, weaker than forecast and the lowest reading since October 1990. Negative readings signal contraction.

Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=a6mEfxa.SBf8&refer=us

[DJ13]

1. Now lets force the Big 3 into bankruptcy

That ought to finish the job!

[whistle]

2. This must be declared a DEPRESSION because Bush and his policies

...made this happen way back at the beginning of his first term. The recovery experienced because of the tax cuts for the wealthy, the Iraq and Afghanistan wars, adding over seven trillion dollars to the national debt were all designed to enrich the wealthy few while dismantling all forms of productive economic activities in the U.S. and eliminating the middle class.

<snip>
Definition of Economic Depression

The yourDictionary Web site defines an economic depression as a prolonged period of recession, or a significant and prolonged downturn in the economy. Characteristics of an economic depression include declining business activities, falling prices, rising unemployment, increasing inventories, public fear and panic.

Economists differ in their opinion of what exactly constitutes recession and depression. Many define recession as two or more quarters of reduced Gross Domestic Product (GDP). GDP measures national income and output for a country’s economy. Per capita GDP is often used to measure the standard of living, with the thought being that as GDP rises, so too does each citizen’s standard of living. Hence, measuring GDP provides clues as to the overall health of the economy and a glimpse into the health of an individual’s wallet.

When the economy moves into a recession, the country’s economy enters a period of negative growth. Real income declines, unemployment rises, and industrial production wavers. If a recession continues for a long time, the economy moves into an economic depression.

Waves of economic growth and contraction constitute the normal ebb and flow of free market capitalism. Throughout its history, the United States economy has undergone periods of boom and bust, with short and sharp economic downturns followed by growth that is considered normal.

Waves of economic growth and contraction constitute the normal ebb and flow of free market capitalism. Throughout its history, the United States economy has undergone periods of boom and bust, with short and sharp economic downturns followed by growth that is considered normal.

However, in the late 1920s, an event happened that changed the world. From 1929 to the early 1940s, the United States and many industrialized countries worldwide experienced a prolonged and deep economic downturn. The Great Depression forced millions into unemployment, homelessness, and near-starvation.

At its worst point, unemployment in America soared to 25%. A decade of easy credit created a false sense of prosperity, while farmers struggled under heavy debt and declining farm goods prices. The ensuing market correction in 1929 evaporated the fortunes of many, with the entire population suffering as consumer demand dropped, jobs disappeared, and factories shuttered against declining orders.

Government intervention, in the form of public policy changes and job creation, improved conditions. The onset of World War II and rising demand for manufactured goods to support the war effort officially ended the Great Depression.

Is the United States entering another period of economic depression? Some economists point to the housing market bubble burst of 2007 as the start of a prolonged and severe downturn. The sub prime mortgage debacle, coupled with more and more factories turning overseas for cheap labor, has many worried that the United States is entering a dark economic period. Others, however, see the current economic downturn as merely a typical correction in the free market economy. Only time will tell whether this is a bump in the economic road or a major detour.

http://www.yourdictionary.com/dictionary-articles/Definition-of-Economic-Depression.html

<also read>
Slouching Towards Utopia?: The Economic History of the Twentieth Century
-XVI. Climbing Out of the Great Depression-
J. Bradford DeLong
University of California at Berkeley and NBER

February 1997

http://econ161.berkeley.edu/TCEH/Slouch_Climb16.html

[Baby Snooks]

3. And Congress has signalled the policy will continue...

Congress holds hearings. Asks questions. And yet continues to do absolutely nothing to stop this. So much for change.

With a little luck those who have benefitted from all of this, including quite a few wealthy Democrats in Congress who are really Republicrats when it comes to protecting their own wealth, will lose everything they have along with everyone else. All these crooks and their corporations are doing is cooking their books with the "borrowed money" to give the appearance of solvency which is what Enron did until the bottom fell out. Of course Enron had assets. The banks at this point appear to not really have any assets. Just debt upon debt upon debt upon debt. Trillions of dollars of debt. That simply cannot be covered up with "cooked books" at this point. So much for the "neo-con artists" and their oligarchy. Of course people like Chelsea Clinton are making lots of money on the hedge funds. Which at this point are basically hedging their bets on what company will go under next. They made a fortune off the $140 a barrel oil which was really worth maybe $100. What goes up goes up because someone's hedge fund has bet it will. What goes down goes down because someone's hedge fund has bet it will. The unregulated hedge funds are a legacy of Phil Gramm. But also a legacy of Bill Clinton. Definitely a legacy for Chelsea Clinton.

And it's not just our economy going under. It's the world economy. But then we are really not in a recession. The market is just "self-regulating." With a little help from the hedge funds and their managers who really don't care if they bankrupt a company or even a sector. All they care about is the hundreds of millions in commissions they make by manipulating the markets and bankrupting everyone and everything in the process. But what goes around, comes around. And what they make has to be invested. And at some point, someone else's hedge fund will wipe them out. And eventually everyone will wipe each other out. And the American taxpayers will be sent the bill for trillions of dollars in debt.

We are a falling empire. And taking the world with us.

[PugNot]

4. This has been a long time coming..

We have been running a debt economy for almost 30 years ...buy now pay later...Everyone has
been doing it..business, individuals, government. And that credit has been tapped out. Time
to pay the piper... Hold on its going to be a rough ride...