Now It's the Manufacturing Collapse

Inquiring minds are looking at the Federal Reserve Bank of New York Empire State Manufacturing Survey.

The Empire State Manufacturing Survey indicates that conditions for New York manufacturers deteriorated significantly in October. The general business conditions index dropped 17 points to a record-low -24.6. The new orders index also fell to a record low, and the indexes for shipments, unfilled orders, and inventories all declined sharply. The prices paid index eased significantly, to its lowest level of the year, while the prices received index also fell, although less sharply. Employment indexes were negative. Future indexes declined markedly with exceptionally large declines in the future new orders and shipments indexes.

Roughly 22 percent of respondents in the current survey said that their need for borrowed funds had increased over the past year, but a larger proportion, 31 percent, indicated that their need had decreased.

I keep asking, "Why would any corporation want to expand into this environment?"

There is simply no good reason to do so. Overcapacity is rampant. Yet Paulson is attempting to compel banks to lend at bazooka point and Bush wants to take over banks in a brave new world to "preserve" free markets. In the meantime, widely respected economists are cheering this rapid march towards fascism.

That is the current sad state of affairs.

Comments

[phdinsuntan...:]

stop this stupid game and drive the interest
rate to where it belongs: 8%

2008 Oct 15 04:38 PM

[Smarty_Pants:]

I imagine a great deal of loathing will soon follow.

2008 Oct 15 04:44 PM

[Urbane Gori...:]

I can understand manufacturing dropping in a global slowdown.. I just don't understand consumer staples doing the same. (Yeah, I know that hedgies are dumping..but still). So much for safe boring stocks...

jegan ;-)

2008 Oct 15 10:12 PM

[Moon Kil Woong:]

LOL, Bernake and Paulson already broke the Fed and Treasury. The Fed funds rate no longer applies to anything. No one will loan or borrow at or near to it. And with money so rare and risk so high, why should they. The only reason the Treasury can think of is if they force feed you billions in equity, charge you 5% so you have to loan it to people who are not credit worthy to break even. So much for the free market and any semblance of rationality.

The simple fact is the US needs austerity and fiscal responsibility. Until the government says... don't spend too much and save rather than spend spend spend the US will remain screwed. Dumping money into the system just encourages people to keep running the US into ruin and shifting all our assets overseas to people who actualy save (gasp in awe).

2008 Oct 15 10:59 PM

[billp37:]

Legendary Taos, New Mexico pilot Fred Fair forwarded link to fun video yesterday.

To: Lenir Drake
Sent: Mon, 13 Oct 2008 3:33 pm
Subject: Modern Economy


www.brasschecktv.com/p...



I wrote a friend in London asking if she could confirm if the program was indeed aired in 2007. This is her reply:
Hi Lenir
Yes I know this pair. I saw this when it was first broadcast - when this story about the sub-prime markets first came out they did this skit but at that time we didn't realise just what impact it was going to have on us all down the track. They are brilliant and hit the spot every time, and are extremely amusing. ( Although right at this moment this subject doesn't make me laugh at all! )
They belong to a group who put on a weekly satirical political programme on the TV here. The programme is broadcast in the Winter months so I suppose that was shown first last year.

--
Lenir Drake

2008 Oct 16 11:47 AM

[OldLimey:]

Lenir: the program is 'Bremner, Bird, and Fortune'. It airs for a 6-8 week season on the UK's Channel 4, and I remember the linked episode well. Folks who read your link might just pass it off as a bit of limey humour, but for a sizeable minority of people here it's fair to say that B,B, and F provide the nearest thing we get to cogent political analysis free of pressure from the elite. Indeed, theirs was perhaps the strongest voice on TV against the Iraq War, and they have a habit of cutting through the BS and spin that surrounds and suffocates practically every important issue in today's Britain. I can't wait to see what this winter's series makes of the last few months.

2008 Oct 16 02:43 PM

[billp37:]

OldLimey

Here are some links to legendary Taos, NM pilot Fred Fair.

www.google.com/search?...

Fred, surprisingly, is still alive. And emailing.

2008 Oct 16 07:49 PM