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Friday's gloomy reports show the world economic outlook to be in dire straits. As U.S....

Friday's gloomy reports show the world economic outlook to be in dire straits. As U.S. employment growth slows sharply, Chinese factory output barely growing and European manufacturing falling deeper into malaise, the calls are going to grow for another round of stimulus from the Fed. Whether or not it wants to step in to catch that falling knife, however, is anyone's guess.
Comments (35)
  • How appropriate
    1 Jun 2012, 07:31 PM Reply Like
  • Yes, we all want ours too ... but it never works that way for us.
    2 Jun 2012, 02:54 AM Reply Like
  • The banks are becoming addicted to stimulus.
    1 Jun 2012, 07:43 PM Reply Like
  • Who isn't? And speaking of addictions, there's a lot of addiction to centralized deficit spending going around these days. In fact, most of the developed economies are so addicted, their respective governments have backed themselves into a situation in which they can't keep spending and they can't stop spending. To keep spending is to run up debts even further, and to stop threatens recession.


    I'm not sure if it will be next month or next decade, but there's a lot of unpleasant changes coming.
    1 Jun 2012, 08:09 PM Reply Like
  • The Old Testament (Leviticus) had a concept of a Jubilee, in which all debts would be forgiven every 99th year. Maybe we need one of those


    1 Jun 2012, 09:13 PM Reply Like
  • Oh really..So all the lazy greedy people can have the BMW they never could afford in the first place. Remember, there really is no free lunch- someone always pays.
    1 Jun 2012, 10:09 PM Reply Like
  • Its not only the banks addicted to stimulus, its the people sucking down their fat pensions and free health insurance by billions every year. Let's cut that as well.
    1 Jun 2012, 10:11 PM Reply Like
  • might be hard to get a loan in year 98....
    2 Jun 2012, 12:44 AM Reply Like
  • really? ya think? wow. you all must think about this stuff all day long! one day i hope to be smart like you people!
    1 Jun 2012, 08:12 PM Reply Like
  • really? Dire straights? China and US ISMs were still relatively strong. Dire would be reports in the 30s.
    1 Jun 2012, 08:40 PM Reply Like
  • Dire jobs report, --600,000 per month like
    W. Bush.
    1 Jun 2012, 08:43 PM Reply Like
  • You won't see those kind of job losses this time around.


    Most of those who lost their jobs in '08 were never re-hired. Obama paid them to stay home instead. So now, they can't be laid off. Great strategy, Barry.
    2 Jun 2012, 09:13 AM Reply Like
  • Is this like the movie Groundhog Day?


    Every week it seems the world is ending.


    Every week it seems governments want to spend even more money to prop up everything.


    We have it exactly backwards. Less government spending. Less bureaucracy. More Freedom.


    Then you'll see economic growth - real growth - from making things and productivity and innovation - not the cheap "high" from borrowing from the crack dealer for another hit!!!
    1 Jun 2012, 08:45 PM Reply Like
  • Absolutely. In a world in which the private sector hides terrified in treasuries and German government bonds, the public sector should also stop spending. The recipe for success.
    1 Jun 2012, 09:23 PM Reply Like
  • Actually, until last month the economic data and news was pretty upbeat.
    1 Jun 2012, 10:12 PM Reply Like
  • Death by a thousand paper cuts!
    1 Jun 2012, 09:51 PM Reply Like
  • The doom and gloom seem separated from reality.


    " The traditional definition of a recession is two consecutive quarters of a shrinking gross domestic product ( "


    From the Economist:
    "The world’s economic growth continued to slow in the final quarter of 2011, according to The Economist’s measure of global GDP, based on 52 countries. Year-on-year growth fell by just under one percentage point to 2.5%."


    From the IMF:
    "The global recovery is threatened by intensifying strains in the euro area and fragilities elsewhere. Financial conditions have deteriorated, growth prospects have dimmed, and downside risks have escalated. Global output is projected to expand by 3¼ percent in 2012 ."


    So the 2012 world GDP will be around $72 trillion dollars. Neither the US or the world appear to be in a recession at this time, so what's with the dire straits?
    1 Jun 2012, 10:12 PM Reply Like
  • It's 2008 PTSD. Anytime any indicator weakens anywhere it is now assumed that the worst possible extrapolation of that weakening is also the most probable outcome.
    1 Jun 2012, 10:43 PM Reply Like
  • GS, MS, Citi are all declaring QE is a sure deal. We, obviously, will heed their warning and do what they think is going to happen.


    1 Jun 2012, 10:55 PM Reply Like
  • They want QE because QE drives down the dollar and inflates stocks, commodities, housing. The banks are hiding trillions in derivative risk on their housing bubble -- of course they want more QE. The Fed only knows one thing: how to create asset bubbles, which the Fed contends is economic growth.


    The more the dollar falls, the less you own by definition. The sacrifice of the dollar for the sake of the banks' bad loans is stealth-inflation.


    No more QE. Raise interest rates. Let's begin the recovery with the necessary first step: recognizing our debt. Second step: destroying the bad with higher cost of borrowing. No economic growth comes unless we dry out the world of too much cheap money. We are in the biblical Flood because of interest rates held too low for too long.
    2 Jun 2012, 12:03 AM Reply Like
  • Nat gas is cheap, mortgage rates are record low, oil is collapsing on supply glut, gas prices are falling, housing.hasnt been this affordable in at least 20 years, and i have a ton of work. No, im not gonna run out and buy a new.Hummer, but i just bought a nook tablet, and life is good. Traders need volatility, and the Reps are desperate to kill the recovery, so of course every time Greece farts the sky collapses. Boehner, pass the highway bill, you lying sack of oats...
    2 Jun 2012, 12:41 AM Reply Like
  • Another condescending, inaccurate, blanket statement from someone facing no hardships. Nor am I guy. But I do have the decency to know others are struggling. You must not have many friends and family asking for help. Or you just don't feel the need to.


    1. Gas is not as cheap as it should be based on refinery capacity, crude supply. Increase the margins on oil with immediate effect to ward off a hedging response and restrict trading to only parties intending to take delivery.


    2. Good for you on having a ton of work. Get out of your cocoon. Clearly not the case for everyone based on yesterday's jobs report.


    3. Who cares what mortgage rates are when the vast MAJORITY of borrowers cannot qualify on credit score or required down payment. Never mind the surplus inventory and how many homes are upside down. Your comment is absurd the housing is "affordable" now? By standards of "buy now and take an immediate loss". Nuts.


    4. Congratulations on your new nook. Consumer spending is down. Meaning people are not joining you.


    5. Of course the economy is responding to Greece. If you paid attention you'd know the potential effect on the Euro. Sad you probably can't correlate that to the dollar, US banking investment in Europe or the overall political implications of austerity.


    Step out of your bubble, get informed on the big picture and try again. This glass ain't half full dude. It's past half empty.
    2 Jun 2012, 06:53 AM Reply Like
  • Obama an anti American socialist is destroying this country with his anti business agenda, that is a major source of instability.
    2 Jun 2012, 08:24 AM Reply Like


    Doom-Gloom, and despair….woooo is me…….


    Now back to reality! Turn OFF Cnbc!!!!!


    Buy Low, Sell High$$


    Good Companies are now cheap, BUY now and ignore the rhetoric!
    2 Jun 2012, 07:13 AM Reply Like
  • I was about to post the exact same 2 lines...
    Plus, my exposure to stocks is through BRK-A. Believe it or not, it actually went up yesterday.
    I love it when the liquidationists freak out and advocate raising rates and cutting expenditures!
    2 Jun 2012, 07:22 AM Reply Like
  • “Excellent” Too much Drama & Negativity giving the talking heads accreditation!


    Best part about Cnbc is the MUTE button on the remote!
    2 Jun 2012, 07:27 AM Reply Like
  • Agreed. I always use it: I get the facts and skip the useless chatter. Plus, talking heads are fun to watch when muted.
    2 Jun 2012, 12:22 PM Reply Like
  • I got nothing against him I think he is a very smart person, but I always wonder which personality Cramer is going to show up with, and how many times it will change in a half hour morning show!


    I think he needs his Meds. evaluated.
    2 Jun 2012, 03:14 PM Reply Like
  • A Very Good Short-Term Indicator says, Buy Now


    See the insider sell/buy ratio in today's Barrons. It called last year's twists and turns quite accurately.
    2 Jun 2012, 07:24 AM Reply Like
  • Been buying HAL, BIDU, CBOU, AAPL, SLB, CAT & WYNN.


    Now it's time to go fish'in and relax!
    "Bought Low, Will Sell High"....$
    2 Jun 2012, 07:38 AM Reply Like
  • Just buy apple, forget the other crap.
    2 Jun 2012, 08:26 AM Reply Like
  • “So do not be Diversified” that is your plan?
    That is as intelligent as your other comment above!
    2 Jun 2012, 09:14 AM Reply Like
  • As Warren Buffet says: "I buy when everyone is selling and sell when everyone is buying..." The buying time is near !!! In about 2 months NOT before. Keep your powder dry and watch from the sidelines!! Suggest a little VXX over the next month.
    2 Jun 2012, 09:45 AM Reply Like
  • Barry,


    You are right on the money with Buffet! However, I think now is a good time to buy. I’m picking up several Jan. Call Options on these companies listed above and getting good prices.


    I will add to them later if they come down, but I expect this nonsense to break soon followed by a rise in prices! Should it not happen, then I have plenty of time for the correction.


    The only ones I failed to mention were KORS, DECK & COH. The got to have fancy-pants boots & purses will soar around Christmas and after. This is a great time to start building a position!...$$$$
    2 Jun 2012, 03:07 PM Reply Like
  • Good Luck Daytrader! But to look out all the way to Christmas is too far for me! I think people will need food and shelter before they buy fancy purses!
    3 Jun 2012, 12:17 PM Reply Like
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