Durable goods orders drop 4.5 percent in August

[RandomGuy]

WASHINGTON - Orders for big-ticket manufactured goods plunged in August by the largest amount in seven months as demand for both airplanes and autos fell sharply.

The Commerce Department reported Thursday that orders for durable goods fell by 4.5 percent last month, far worse than the 1.6 percent decline that economists expected. It was the biggest setback since a 4.7 percent fall in January and came after modest increases in the past three months.

The widespread weakness was led by a 38.1 percent fall in orders for commercial aircraft, the biggest drop in this category in a year. Demand for autos fell by 8.1 percent — the biggest drop in 19 months — as automakers struggle with the weak economy and falling demand for once-popular trucks and sport utility vehicles.

"This is a very weak report," said Ian Shepherdson, chief U.S. economist at High Frequency Economics. "Industry is in trouble."

source article (http://news.yahoo.com/s/ap/20080925/ap_on_bi_go_ec_fi/durable_goods)

[2centsworth]

no credit to make big ticket purchases.

[101A]

Hell we're at least 90% of the way to recession; don't bail 'em out. Let's go all in.

The McCain campaign has GOT to be encouraged by this.

[RandomGuy]

Hell we're at least 90% of the way to recession; don't bail 'em out. Let's go all in.

The McCain campaign has GOT to be encouraged by this.

:spin

Meh. It is what it is.

I checked yahoo news this morning and got:

Durable goods drop
Unemployment up
housing crisis worsens

Yikes. Wait till the market reads that, along with higher basic commodity prices.

China is exporting their inflation to the US, so we will be sitting in a recession with some nasty inflationary pressures.

I have seen conspiracy theorists predicting martial law and "internment camps (more precisely: "FEMA death camps")" for some time based on some nebulous "collapse".

While I think that is a tad extreme, I think there is some serious blood-letting yet to come in the financial sector, even with the bailout.

That will lead to some ripple effects in the insurance industry and elsewhere.

I was listening to an interesting point on the radio this morning:

Since a LOT of banks have these hard-to-value assets on their books, and are likely overvaluing them, if the real value becomes known as the government buys them up and that value is a lot lower, then we could have a very nasty collapses. This seems very very likely to me.

[2centsworth]

Since a LOT of banks have these hard-to-value assets on their books, and are likely overvaluing them, if the real value becomes known as the government buys them up and that value is a lot lower, then we could have a very nasty collapses. This seems very very likely to me.

these hard to value assets are supported by real estate, no? the government is going to pay around .25 cents on the dollar, correct? please tell in what scenario those assets would be valued significantly lower? Now if the fed pays .40 cents or more, I will be upset.

[RandomGuy]

This message is hidden because 2centsworth is on your ignore list.

You're an asshole. Please don't bother.
Feel free to put me on your ignore list. I would prefer it.