Happy Thanksgiving from all of us at CrushTheStreet.com
We are very thankful for all of our faithful followers who support our site and support the message at CrushTheStreet.com. We work very hard to bring to you up to date news, videos, and unique commentary that defies the headwind of conventional wisdom. This update will be just like the rest, blunt and in the faces of those responsible for the mess that the world is in.
Patriotically, it really is frustrating to be thankful for anything the country, and specifically the government, is doing when you are in the know and you follow the atrocities on a daily basis. The sham the clowns in DC are running is taking America past the point of no return down a rabbit hole into the Abyss of Hell. Of course when compared relatively, the grass is greener than some God forsaken desert country when you consider the average life expectancy is in the mid 30s and they don’t have the WONDERFUL privilege of watching Dancing With The Stars on Wednesday nights. But, from where this country was to where it is now, it is rather depressing to consider how big our government has become and how far we have gone from the constitution and free market. What our goal is here on CrushTheStreet.com is to provide our followers with the truth regardless of who or what is in the way.
If you have not yet had the chance to watch Energy Shock: How Peak Oil Will Change Your Life, it is still our featured post and we encourage you to visit our front page for this shocking video that needs to be shared with as many people as possible.
Getting into it…
Set against an already bearish backdrop, market participants reacted negatively to the Fed’s decision to increase capital controls for banks and underwhelming data from both home and abroad. That left stocks to record their sixth straight loss and settle at new monthly lows.
The perception of Europe was hardly helped by news that Germany, the continent’s strongest and most diverse economy, held a debt auction that drew disappointing demand. Germany also reported that its PMI Manufacturing reading for November fell to 47.9 from 49.1 in the prior month. The November Manufacturing PMI for the broader eurozone eased to 46.4 from 46.5 in October.
The eurozone confidence is at a -20.4, which is down from a -19.9 in October. The ECB’s response to all of this was to cut their key interest rate. Sounds like they took some advice from the Federal Reserve.
Life isn’t fair but everyone seems to want a handout if their neighbor is going to get one. The Irish government has suddenly complicated the picture by requesting debt relief from as a reward (OMG) for upholding the integrity of the EU financial system after the Lehman crisis, though there is no explicit linkage between the two issues.
“We carried an undue burden for protecting the European banking system from contagion,” said finance minister Michael Noonan. “We are looking at ways to reduce the debt. We would like to see our European colleagues address this in a positive manner. Wherever there is a reckless borrower, there is also a reckless lender,” he said, alluding to German, French, British and Dutch banks. Ireland will have to meet the austerity budget targets set by its bailout lenders if the country is to get its economic sovereignty back, Irish Prime Minister Enda Kenny said Tuesday. There is a spirit of relinquichment of personal repsonsibility around the world and everyone wants a bailout.
China has also been issueing disappointing data. The country’s Flash PMI Manufacturing reading for November fell to 48.0 from 51.0 in the prior month. Even with China’s great potential, this country still has exposure to the global crisis.
As for domestic data, initial jobless claims for the week ended November 19th totaled 393,000, which is barely changed from what was posted in the prior week. Personal spending during October increased by 0.1%, which is less than the 0.3% increase that had been broadly expected, but personal income increased by 0.4% to exceed the 0.3% increase that had been anticipated.
Excluding transportation related items, durable goods orders actually jumped by 0.7% in the face of the consensus call for no change. The weakness is compounded by the fact that September orders were revised downward by a substantial 1.5 percentage points. Perception of news is driving markets more than the news itself.
Core capital goods orders – excluding defense and aircraft – declined 1.8%, its worst performance in six months and below market expectations. The decline was driven by a 5.2% drop in new electrical equipment orders. There will likely be a continuation for this trend being that the U.S. is in the process of pulling out of the Middle East and NEEDED further cuts will be on the way for any progress to take place.
College students are returning back to their homes. As of last month, only 74% of individuals ages 25 through 34 were working. 14.2% of young adults are living with their parents and the economy will suffer since they aren’t paying rent, paying for their own livelihood, and just producing in general.
According to the U.S. Census, 100 million Americans are either in poverty or just right above it. To put this into perspective for you, this comes out to be 1 out of 3 Americans!!!
The macro affects of the economy are still upon us. CrushTheStreet.com is still encouraging those who haven’t put it in their minds to prepare for major calamities that are to come to begin doing so.
As always, visit CrushTheStreet.com for featured videos, news updates, and live metals pricing.
“I celebrated Thanksgiving in an old-fashioned way. I invited everyone in my neighborhood to my house, we had an enormous feast, and then I killed them and took their land.” Jon Stewart
Hope everyone has a Happy Thanksgiving…
Opt-out of conventional wisdom!!!