Friday, July 16, 2010

Another Peak Under The Surface

Yesterday  I discussed the week's economic data in Looking Under The Surface.  This morning the markets were hit hard with two more punches to the stomach.

The weekly ECRI leading economic indicators index has hit -9.8.  I discussed this indicator in detail in The Stage Is Now Set.  As a reminder, over the past 42 years a -10 reading has coincided with a recession. (Meaning we have now "officially" entered the double dip that is "officially" impossible to enter according to the media)

After catching its breath the market received the University of Michigan's Consumer Sentiment report which fell off a cliff down to 66.5 from the previous 76.

Remember that our ponzi economy is based entirely on consumers going into debt to buy goods they do not need.  Consumer sentiment is the indicator that judges how likely they are to further burden themselves with additional debt.

The week's economic data continues to be a complete blood bath across the board.

We can now only hope and pray for our fellow Americans still brave enough to be in the stock market.