Shaggieman

Wall Street Breakfast: Must-Know News

The Fed is counting on the dollar based consumers picking up the spending as they withdraw. So If the dollar goes to freefall so does the hopes of a recovery. Then the consumers buying power is gone and the Fed will have to look to the Chinese to fund the recovery.

<<<Yellen warned that the Fed could not maintain its loose money stance for too long, regardless of the pace of recovery. "It is a core responsibility of the Federal Reserve to preserve price stability," she said.>>>

Wall Street Breakfast: Must-Know News

Seems to me folks around the world are waiting to see "the crooks" locked up before they'll start renewing our credit. Madoff is sitting in his $15 million apartment, Stanford is somewhere else and the list goes on and on of "the crooks" walking the streets. Can you really blame other countries for being cautious about loaning America more money? I've finished my rant.

Wall Street Breakfast: Must-Know News

Everyone knows the economy is weakening but Volvo's truck order book stunned me. I had to read this twice to make sure I had it right. Capex is imploding. From Bloomberg:

“In the third quarter of 2007, Volvo AB booked 41,970 European orders for new trucks. Guess how many prospective purchases Volvo, the world’s second-biggest maker of heavy rigs, received in the third quarter of this year?

“Here’s a clue. Picture a highway gridlocked by 41,815 abandoned trucks – because Volvo’s order book got destroyed to the tune of 99.6%, with customers signing up for just 155 vehicles in the three-month period, the Gothenburg, Sweden-based company said last week.


“The pathogen that has fatally infected swathes of the banking industry is now contaminating non-financial companies. ‘We’re heading toward the sharpest downturn I’ve ever seen in Europe,’ said Chief Executive Officer Leif Johansson.


“Volvo has company. Daimler AG, the world’s biggest truckmaker, said earlier this month that its US deliveries slumped by a third in the first half of the year.”