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Originally posted by johnny2127
Originally posted by Jeremiah Johnson
Is it just me or are we getting conflicting news everyday about the economy? They report 1 tidbit of good manufacturing news and all of a sudden all is well again? Please... tomorrow's headline will be another downer and we will be going to hell in a hand basket again. How can anything be improving when we are trillions in debt and we continue to borrow from China? When will the government get real with us?
You can't just look at a broad measure or statistic and assume the number is good. The manufacturing number was higher than expected, but that was due to higher than expected imports and larger inventories than estimated. Those are not positive things for the economy, but for this statistic it drives the number higher. Additionally, buried within the statistic is the commentary from manufacturers that their manufacturing is being driven by foreign demand.
So here's what this number today really says:
1) We imported even more than we thought we would, so our trade deficit is higher.
2) Inventories are higher than expected which means they aren't being drawn down and bought as quickly as thought. Thats bad.
3) Foreign economies are placing more orders than the US with manufacturers..... that with the US being the biggest consumer.
So this manufacturing number is not as good as it looks. Its like someone saying they lost weight, so people assume they are working out and eating healthy, but its actually because they have been sick and throwing up all over the place.
Originally posted by Jeremiah Johnson
reply to post by tspark
Definitely bogus, I have had 3 friends get laid off in as many weeks and that is just this past month, that isn't counting the friends from the past year that got the axe. Everyday I come into work I wonder if it will be my last, I work for a very large and well known corporation and they won't think twice about kicking me out the door but on a side note they have no issue giving the CEO a 12 million dollar bonus the past 2 years while the rest of us haven't seen a raise in 3 years.