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Rosenberg: 13 Signs That We’re In A Depression – Right Now.

  • Written by Syndicated Publisher No Comments Comments
    September 8, 2010

    great depressionFrom www.businessinsider.com

    David Rosenberg has outlined, in his latest letter, the 13 reasons with this so-called recovery is actually a depression.

    Rosenberg sums it up like this:

    This is what a depression is all about — an economy that 33 months after a recession begins, with zero policy rates, a stuffed central bank sheet, and a 10% deficit-to-GDP ratio, is still in need of government help for its sustenance.

    Each one of these 13 reasons is more damning and highlights the true state of the economy: caught in a liquidity trap with little way out.

    Wages and salaries still down 3.7% from prior peak

    Real GDP is still down 1.3% from the peak

    Real GDP is still down 1.3% from the peak

    Industrial production is still down 7.2% from the peak

    Industrial production is still down 7.2% from the peak
    Industrial production data, from the Federal Reserve.

    Employment is still down 5.5% from the peak

    Employment is still down 5.5% from the peak
    Civilian Employment St. Louis Fed

    Retail sales are still down 4.5% from the peak

    Retail sales are still down 4.5% from the peak
    Retail sales, from the St. Louis Fed.

    Manufacturing orders are still down 22.1% from the peak

    Manufacturing orders are still down 22.1% from the peak
    Manufacturing orders, from the St. Louis Fed.

    Manufacturing shipments are still down 12.5% from the peak

    Manufacturing shipments are still down 12.5% from the peak
    Manufacturing shipments, from AccuVal.

    Exports are still down 9.2% from the peak

    Exports are still down 9.2% from the peak
    U.S. exports, from Trading Economics.

    Housing starts are still down 63.5% from the peak

    Housing starts are still down 63.5% from the peak
    Housing starts, from the St. Louis Fed.

    New home sales are still down 68.9% from the peak

    New home sales are still down 68.9% from the peak
    New home sales, from the St. Louis Fed.

    Existing home sales are still down 41.2% from the peak

    Existing home sales are still down 41.2% from the peak
    Existing home sales, from Realtor.

    Non-residential construction is still down 35.7% from the peak

    Non-residential construction is still down 35.7% from the peak
    Non-residential construction, from biz570.

    Corporate profits are still down 20% from the peak

    Corporate profits are still down 20% from the peak
    Note: From the St. Louis Fed charts, we can’t see the conclusion Rosenberg is coming to, as profits appear to have now drawn level.

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