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New Vehicle Sales “Collapse” And Pending Home Sales “Plunge” As America’s Economic Slowdown Accelerates In late 2018, the bad economic news just keeps rolling in. At a time when consumer confidence is absolutely soaring, the underlying economic numbers are clearly telling us that enormous problems are right around the corner. Of course this is usually what happens just before a major economic downturn. Most people in the general population feel like the party can go on for quite a while longer, but meanwhile the warning signs just keep becoming more and more obvious. I have been hearing from people that truly believe that the economy is “strong”, but if the U.S. economy really was in good shape would new vehicle sales be “collapsing”?…
Those are absolutely terrible numbers. And this news comes after all of the major automakers had already revised earnings guidance lower. The following comes from Zero Hedge…
Sadly, this may just be the very beginning of the auto industry’s troubles. It is now being projected that if this trade war with China continues, U.S. automakers could see total sales fall “by 2 million vehicles per year”…
And needless to say, the thousands of companies that do business with those large automakers would also lose sales and jobs. Once these downturns get rolling, the domino effect can be absolutely devastating. On Thursday, we also learned that pending home sales “plunged in August”…
If the U.S. economy truly is “strong”, then why have we seen four monthly declines in a row? And it isn’t just one part of the nation that is experiencing a downturn. According to Bloomberg, all four major regions of the country showed a decline…
Homes are not selling like they once were. There is a reason why one out of every four home sellers in America slashed their prices in August. Demand is way down, and that strongly indicates that an economic slowdown is here. When it looks like the economy is headed for a major downturn, a lot of people go out and stock up on gold, and it turns out that is precisely what global central banks have been doing…
Of course the Federal Reserve and other central banks are trying to assure us that everything is going to be okay, but meanwhile their actions are telling us a different story. Much of the world is already in the midst of a crippling economic crisis, and every indicator seems to be pointing to the fact that the U.S. is headed down the same path. Even without any extenuating circumstances, the truth is that we are way overdue for a recession. But when you throw in political chaos, exploding debt levels, an emerging market currency crisis and a trade war between the two largest economies on the entire planet, you definitely have a recipe for a perfect storm. If you do not believe that this trade war is a big deal, you should consider the words of former Reagan administration official David Stockman…
The U.S. economy has found a way to muddle through for the past couple of years, and we should all hope that the economy can find a way to navigate through these current problems. But the storm clouds are growing more ominous with each passing day, and at some point time will run out.
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