Durable goods orders drop 4.2% in March

posted at 10:01 am on April 25, 2012 by Ed Morrissey

We’re just a couple of days away from the Commerce Department Q1 GDP report, and the indicators continue to turn sour.  Today’s bad news comes from the manufacturing sector, where durable-goods orders had their worst month in three years:

New orders for manufactured durable goods in March decreased $8.8 billion or 4.2 percent to $202.6 billion, the U.S. Census Bureau announced today. This decrease, down two of the last three months, followed a 1.9 percent February increase. Excluding transportation, new orders decreased 1.1 percent. Excluding defense, new orders decreased 4.6 percent. Transportation equipment, also down two of the last three months, had the largest decrease, $7.1 billion or 12.5 percent to $49.7 billion. This was due to nondefense aircraft and parts, which decreased $7.7 billion.

And in even worse news, inventories continued to rise even though demand fell significantly:

Inventories of manufactured durable goods in March, up twenty-seven consecutive months, increased $1.7 billion or 0.4 percent to $375.1 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 0.3 percent February increase. Transportation equipment, also up twenty-seven consecutive months, had the largest increase, $0.8 billion or 0.7 percent to $118.0 billion. This was also at the highest level since the series was first published on a NAICS basis.

The dropoff in transportation orders was expected, although perhaps not to this extent; that sector dropped more than 12%.  However, durable orders fell in non-transportation categories as well, which was not expected.  February’s previously-announced increase was revised downward as well:

Demand for long-lasting U.S. manufactured goods dropped by the most in three years in March and a gauge of business spending plans fell, suggesting factory activity lost momentum as the first quarter ended.

Durable goods orders tumbled 4.2 percent, the largest decline since January 2009, the Commerce Department said on Wednesday after a downwardly revised 1.9 percent increase in February.

Economists had forecast orders for durable goods, which range from toasters to aircraft, falling 1.7 percent after a previously reported 2.4 percent rise in February.

Orders were dragged down by a 12.5 percent plunge in bookings for transportation equipment — the most since November 2010.

Excluding transportation, orders fell 1.1 percent after a 1.9 percent rise in February. Economists had forecast this category rising 0.5 percent.

The 2011Q4 GDP report came in at a respectable but hardly potent 3.0% after a decent run in the manufacturing sector and some stability in gas prices.  However, in 2012Q1, we have had two very bad months (January and March) for durable goods, a bad January for overall factory orders which will likely get repeated in March, and a hiring slowdown that’s hardly coincidental.  Don’t be surprised to see something significantly bad for a GDP report in a couple of days.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Comment pages: 1 2

And yet, the market is spiking. I wonder why.

stenwin77 on April 25, 2012 at 10:15 AM

If you’re really wondering, it’s because the market is figuring in a Romney win in November. If Obama does win or is high in the polls near election day, the market will tank.

dirtseller on April 25, 2012 at 10:17 AM

You’re delusional. Mitt is far, far, far from winning in November. It isn’t a factor yet. Now, if it were Sept or Oct and Mitt were ahead, sure. It’s too early and Mitt is likely going to lose.

The market is being manipulated.

stenwin77 on April 25, 2012 at 10:22 AM

I disagree with both points of view.

The market is doing ok – not great – because USA corps are pretty awesome. Most of their growth, however, is coming from overseas. Of course, obama is trying to choke that off by increasing overseas taxes, but he won’t be able to kill that golden goose so easily.

Deafdog on April 25, 2012 at 11:06 AM

But yet the stock market continues to rise, next bubble?

DDay on April 25, 2012 at 11:02 AM

continuous bubble….

upinak on April 25, 2012 at 11:06 AM

Slightly off-topic, but that picture of Obanma with the giant screw/auger needs to find a starring role in a caption contest! That one is just too good to waste.

drunyan8315 on April 25, 2012 at 11:07 AM

I want him to bring it!

blink on April 25, 2012 at 11:05 AM

get r’done!

upinak on April 25, 2012 at 11:07 AM

If you are paying attention, Romney is winning something called the Republican Nomination. With the picture clearer than it has been in the past 6 months and with a presumptive nominee picked for the Republicans, Yes the markets will respond to that.

Apparently the markets don’t believe Gallup either.

dirtseller on April 25, 2012 at 11:04 AM

LOL. So you think investors only realized Romney would win the nomination today? Everyone has known Romeny would be the nominee for at least 3 months. But all of a sudden today, investors woke up and thought, hmmm I think I’ll go buy some stocks because Romney won Delaware.

You people are pathological.

angryed on April 25, 2012 at 11:08 AM

angryed on April 25, 2012 at 11:08 AM

What’s that smell? Did somebody fart in here?

Trafalgar on April 25, 2012 at 11:09 AM

The “sky is falling” types were predicting increased interest rates after a downgrade. How’d that work out? 15 year mortgages are under 3%.

angryed on April 25, 2012 at 11:02 AM

Are you in favor of the Fed’s continued and excessive monetary expansion which has been used to fund the deficit and keep rates down in order to counter Obama’s terrible fiscal and economic policies?

blink on April 25, 2012 at 11:05 AM

I didn’t say I’m in favor of it or not. I simply stated the predictions from the Chicken Littles did not materialize.

BTW, were you opposed to the 1% Fed rate Greenspan had during Bush’s years? Or is easy money OK during a Republican administration?

angryed on April 25, 2012 at 11:10 AM

The 2011Q4 GDP report came in at a respectable but hardly potent 3.0%

This is straight out of 1984, except that it’s not just the words that are skewed — even the NUMBERS are all re-defined.

At the current REAL inflation rate, and accounting for working age population increase, we’d need at least a 6% growth rate TO BREAK EVEN. Anything less than that is a net decline.

In other words, our best quarter in the past two years is a NEGATIVE three percent. There isn’t anything “respectable” about that.

logis on April 25, 2012 at 11:11 AM

It’s a trend. And a very bad one at that.

Chip on April 25, 2012 at 10:55 AM

angryed on April 25, 2012 at 11:02 AM

Did you miss this more recent Downgrade?

Egan-Jones Downgrades U.S. to AA From AA+
http://www.foxbusiness.com/economy/2012/04/05/egan-jones-downgrades-us-to-aa-from-aa/

Barack Hussein has also Downgraded our Liberty with attacks on the right to keep and bear arms and freedom of speech and religion.

He’s Downgraded our military and our stature overseas.

He’s Downgraded the rule of law and the Constitution

He’s Downgraded the supply of oil with keystone decision and drilling ban.

He’s Downgraded our great grandchildren’s future with his wasteful vote-buying schemes

Isn’t that enough Downgrading for you?

The natural progress of things is for liberty to yield, and government to gain ground. Thomas Jefferson

Chip on April 25, 2012 at 11:11 AM

Stop being stupid, Ed. The market is more likely to shake off bad news and be capable of advancing if it’s comprised of buyers that are optimistic about the future.

That doesn’t necessarily mean that any Romney news was an inflection point today.

blink on April 25, 2012 at 11:11 AM

It’s painfully obvious you have never worked in the financial sector. Stop listening to the talking heads on CNBC/FBN. What you types is verbatim the kind of idiocy spewed on those networks 24/7.

Shake off bad news? LOL. I love that one.

angryed on April 25, 2012 at 11:13 AM

Well, England has already gone into double-dip recession. Australia is contracting. You guys may not be far behind.

OldEnglish on April 25, 2012 at 10:18 AM

April is going to be a brutal month for President 10-289.

Architecture is the ultimate predictor of the economy. 80-90% of our projects have been put on hold in April. It is broad based, from maanufacturing to housing to churches. I’ve never seen that happen before.

The Keystone pipeline will prove to be the killer for President 10-289.

Directive 10-289 is all the progressives have left.

MichaelGabriel on April 25, 2012 at 11:14 AM

I don’t really have a job. As I mentioned before, I semi-retired in my 30s. I spend my days playing golf in the summer, skiing in the winter and of course countering the stupidity spewed forth on RomneyAir.

angryed on April 25, 2012 at 10:38 AM

Semi-retired? Is that what living off of welfare and food stamps is called these days? And BTW you do realize that golf and skiing are actual sports and not just games for your X-box, right?

Happy Nomad on April 25, 2012 at 11:15 AM

Barack Hussein has also Downgraded our Liberty with attacks on the right to keep and bear arms and freedom of speech and religion.

He’s Downgraded our military and our stature overseas.

He’s Downgraded the rule of law and the Constitution

He’s Downgraded the supply of oil with keystone decision and drilling ban.

He’s Downgraded our great grandchildren’s future with his wasteful vote-buying schemes

Isn’t that enough Downgrading for you?

Chip on April 25, 2012 at 11:11 AM

1. Romney would do the same. He banned guns in MA. He is in favor of Cap N Trade.

2. You can still prosper even if what you say is true. That’s my point. It doesn’t matter who is in charge, there is always money to be made. The way you lose money is by caring who is in charge.

angryed on April 25, 2012 at 11:15 AM

It’s painfully obvious you have never worked in the financial sector.
angryed on April 25, 2012 at 11:13 AM

Umm weren’t you saying yesterday how you cannot do tax write off on rentals? You do realize taxes are part of the “financial center”?

LMFAO… wow…

upinak on April 25, 2012 at 11:16 AM

Chip on April 25, 2012 at 11:11 AM

Egan Jones is now under SEC investigation. Just a coincidence that they issued the downgrade a couple weeks ago though.

forest on April 25, 2012 at 11:17 AM

Double-dip recession here we come!

And it will probably feel like it hurts harder than the first one.

albill on April 25, 2012 at 11:19 AM

Semi-retired? Is that what living off of welfare and food stamps is called these days?

Happy Nomad on April 25, 2012 at 11:15 AM

In his case it’s called “lying”. Aed would claim to be an astronaut, physicist, or monkey trainer if he thought it would lend him cred at HotGas.

Bishop on April 25, 2012 at 11:22 AM

I don’t believe the market is being manipulated, unless its by the Fed. Reserve, I would say it was probably shovel ready.

DDay on April 25, 2012 at 11:26 AM

It doesn’t matter who is in charge, there is always money to be made. The way you lose money is by caring who is in charge.

angryed on April 25, 2012 at 11:15 AM

That has a kernal of truth, but it’s mostly false.

For sure there are always business cycles. The business cycles are more important than who’s in charge.

It’s much easier to make money, and there’s alot more money being made, in up business cycles.

But who’s in charge can influence the stregnth of the cycles – both up and down – and so you should care.

Deafdog on April 25, 2012 at 11:26 AM

Like one of his heroes, FDR, the same is happening now as in the great depression. There was some good in the first three years and then the shit hit the fan in years 4-8. Then world war.

jukin3 on April 25, 2012 at 11:30 AM

So let’s recap so far. Under Obama:

Unemployment has increased from 6.9% to (at least) 8.2%
The deficit is way up.
The national debt is way up.
The economy has ground to a standstill with GDP growth of around 1-1.5%.
Taxes are up.
Durable goods orders are falling off a cliff.
The housing market is a disaster, and not getting any better.
Food stamp usage is up.
Gas prices are up.

And yet the Democrats say we can’t go back to the failed policies of the Bush administration when unemployment was lower, the economy was growing faster, the deficit, national debt and gasoline were lower etc. No wonder they have to try to scare women into thinking there’s some evil conspiracy against them.

eyedoc on April 25, 2012 at 11:41 AM

If you are paying attention, Romney is winning something called the Republican Nomination. With the picture clearer than it has been in the past 6 months and with a presumptive nominee picked for the Republicans, Yes the markets will respond to that.

Apparently the markets don’t believe Gallup either.

dirtseller on April 25, 2012 at 11:04 AM

Today’s markets are far more likely responding to Apple’s blowout quarter than Mitt Romney. The election is still too far away and too uncertain to be a factor in the market.

Gladtobehere on April 25, 2012 at 11:54 AM

I said it before and will say it again

Bye Obama

Conservative4ev on April 25, 2012 at 11:54 AM

That’s right. I made money shorting the market when Obama was elected.

blink on April 25, 2012 at 11:27 AM

Good. That’s how you play the game. Although I hope you also covered your shorts quickly thereafter.

angryed on April 25, 2012 at 11:58 AM

Today’s markets are far more likely responding to Apple’s blowout quarter than Mitt Romney. The election is still too far away and too uncertain to be a factor in the market.

Gladtobehere on April 25, 2012 at 11:54 AM

A voice of sanity at RomneyAir? Now I’ve seen it all.

angryed on April 25, 2012 at 11:58 AM

This is a very stupid comment.

Many businesses are completely unable to prosper under certain regulatory environments and in certain economies. It’s stupid for you to claim that businesses can pivot on a dime and change strategies so quickly.

blink on April 25, 2012 at 11:27 AM

My comment was as an investor not as a business owner. If I see Obama is going after industry X, I get out of X. Staying in X and complaining about it is a sure money loser.

angryed on April 25, 2012 at 12:01 PM

No, I don’t really have a job. As I mentioned before, I semi-retired in my 30s. I spend my days playing golf in the summer, skiing in the winter and of course countering the stupidity spewed forth on RomneyAir.
angryed on April 25, 2012 at 10:38 AM

Just like you’re a hardcore conservative who just can’t stop talking about how darn great Obamanomics is.

Get the help you need, ed.

Chuck Schick on April 25, 2012 at 12:02 PM

Just like you’re a hardcore conservative who just can’t stop talking about how darn great Obamanomics is.

Get the help you need, ed.

Chuck Schick on April 25, 2012 at 12:02 PM

When have I talked about how great Obamanomics is? You imbeciles think that not loving McWillard = loving Obama. It’s what happens when you’re in a cult and anyone dares question the leader’s greatness.

Stop listening to Sean and Rush for a while, you may be exposed to new ideas.

angryed on April 25, 2012 at 12:08 PM

Did you miss this more recent Downgrade?

Egan-Jones Downgrades U.S. to AA From AA+
http://www.foxbusiness.com/economy/2012/04/05/egan-jones-downgrades-us-to-aa-from-aa/

Barack Hussein has also Downgraded our Liberty with attacks on the right to keep and bear arms and freedom of speech and religion.

He’s Downgraded our military and our stature overseas.

He’s Downgraded the rule of law and the Constitution

He’s Downgraded the supply of oil with keystone decision and drilling ban.

He’s Downgraded our great grandchildren’s future with his wasteful vote-buying schemes

Isn’t that enough Downgrading for you?

1. Romney would do the same. He banned guns in MA. He is in favor of Cap N Trade.

2. You can still prosper even if what you say is true. That’s my point. It doesn’t matter who is in charge, there is always money to be made. The way you lose money is by caring who is in charge.

angryed on April 25, 2012 at 11:15 AM

1. That is not assured – It’s Assured if the Downgrade era continues – which you seem to be advocating….

2. Does you have a response to the other items?

The natural progress of things is for liberty to yield, and government to gain ground. Thomas Jefferson

Chip on April 25, 2012 at 12:09 PM

2. Does you have a response to the other items?

Chip on April 25, 2012 at 12:09 PM

Resist we much?

angryed on April 25, 2012 at 12:12 PM

Chip on April 25, 2012 at 11:11 AM

Egan Jones is now under SEC investigation. Just a coincidence that they issued the downgrade a couple weeks ago though.

forest on April 25, 2012 at 11:17 AM

Just like the Tea Party groups that Just happened be under audit….

Nah, must be a coincidence, because the connection that would make the Downgrade Administration akin to a banana Republic.

The natural progress of things is for liberty to yield, and government to gain ground. Thomas Jefferson

Chip on April 25, 2012 at 12:13 PM

2. Does you have a response to the other items?

Chip on April 25, 2012 at 12:09 PM

Resist we much?

angryed on April 25, 2012 at 12:12 PM

Should’ve guessed – but hey, that makes you look unintelligent, so what do I care..

The natural progress of things is for liberty to yield, and government to gain ground. Thomas Jefferson

Chip on April 25, 2012 at 12:15 PM

When have I talked about how great Obamanomics is? You imbeciles think that not loving McWillard = loving Obama. It’s what happens when you’re in a cult and anyone dares question the leader’s greatness.

Stop listening to Sean and Rush for a while, you may be exposed to new ideas

angryed on April 25, 2012 at 12:08 PM

Earlier in this thread:

Yeah, the market has been AWFUL with Obama in the WH.

http://finance.yahoo.com/echarts?s=^DJI+Interactive#symbol=^DJI;range=5y

You people really do live in an alternate universe.

angryed on April 25, 2012 at 10:33 AM

Chuck Schick on April 25, 2012 at 12:18 PM

But yet the stock market continues to rise, next bubble?

DDay on April 25, 2012 at 11:02 AM

Yes. Whenever we get bad economic news the stock market goes up because it means interest rates will stay down and the Fed will keep printing money and buying Treasuries. This whole stock market move up is a bubble brought about with cheap money, the same way the housing bubble was brought about by cheap money. Now the cheap money that would’ve gone into housing a few years ago is going into stocks instead.

eyedoc on April 25, 2012 at 12:21 PM

The government is currently borrowing at a clip of 7% of the GDP which artificially props up growth to 2%. We are actually slipping into a double-dip faster than it appears. Our true growth number is negative. Facts kids

Bensonofben on April 25, 2012 at 12:35 PM

Like one of his heroes, FDR, the same is happening now as in the great depression. There was some good in the first three years and then the shit hit the fan in years 4-8. Then world war.
jukin3 on April 25, 2012

Ditto.
Great book about the subject, by Amity Shlaes:
http://www.amazon.com/The-Forgotten-Man-History-Depression/dp/0060936428/ref=sr_1_1?s=books&ie=UTF8&qid=1335371858&sr=1-1

humdinger on April 25, 2012 at 12:39 PM

Now the cheap money that would’ve gone into housing a few years ago is going into stocks instead.

eyedoc on April 25, 2012 at 12:21 PM

..thanks for helping us see this clearly, doc!

:-D

The War Planner on April 25, 2012 at 12:40 PM

Trillions spent and all we got was a brief pause in the downward slide…

PatriotRider on April 25, 2012 at 12:43 PM

Just like you’re a hardcore conservative who just can’t stop talking about how darn great Obamanomics is.

Get the help you need, ed.

Chuck Schick on April 25, 2012 at 12:02 PM

..ya know, Chuck, we all laugh at this idiot and his lunatic ravings, but you might be onto something. I dunno? Like The Stockholm Syndrome?

The War Planner on April 25, 2012 at 12:47 PM

The “sky is falling” types were predicting increased interest rates after a downgrade. How’d that work out? 15 year mortgages are under 3%.

angryed on April 25, 2012 at 11:02 AM

I agree that they have proven to be more adept at juggling chainsaws than I ever thought a government employee could be, but what can’t continue won’t continue.

DFCtomm on April 25, 2012 at 1:01 PM

But yet the stock market continues to rise, next bubble?

DDay on April 25, 2012 at 11:02 AM

Yes. Whenever we get bad economic news the stock market goes up because it means interest rates will stay down and the Fed will keep printing money and buying Treasuries. This whole stock market move up is a bubble brought about with cheap money, the same way the housing bubble was brought about by cheap money. Now the cheap money that would’ve gone into housing a few years ago is going into stocks instead.

eyedoc on April 25, 2012 at 12:21 PM

Three sentences from eyedoc that explain it all – nice job. Our economic system is a system of bubbles thanks to government interference, manipulation, corruption, incompetence, and overreach. Know this, ride it, and ye will profit.

The green energy bubble is deflating. The muni bond bubble is a parasitic bubble currently in stasis, being propped up by the cheap money bubble (see next sentence). The cheap money bubble is fully inflated and is bouncing on a bed of nails. The sovereign debt bubble is too risky with too low a return. Prudent money dictates the search for the next inflating bubble, while the bubble machine yet functions.

AttaBoyLuther on April 25, 2012 at 1:02 PM

It has been reported that Britain is on the verge of a double dip recession; is this the canary in the cole mine that shows we are in line for the same fate?

If we go into a double dip, it will mean two things: (1) Obama is done even though it will still be close; and (2) Obama and Romney will engage in the most negative and nasty Presidential campaign ever. It will be worse than the election of 1828 between Adams and Jackson….

RedSoxNation on April 25, 2012 at 1:02 PM

ZOMG!

Romney beating Obama in Virginia.

http://www.rasmussenreports.com/public_content/politics/elections/election_2012/election_2012_presidential_election/virginia/election_2012_virginia_president

Obarky won here by 6 in 08

sheikh of thornton on April 25, 2012 at 1:11 PM

Romney will engage in the most negative and nasty Presidential campaign ever.

I look forward to it. Pass the popcorn.

sheikh of thornton on April 25, 2012 at 1:12 PM

Trillions spent and all we got was a brief pause in the downward slide…

PatriotRider on April 25, 2012 at 12:43 PM

Three brief pauses. See the chart. But there’s more…

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/04/3rd%20time%20charm.jpg

AND:

http://www.zerohedge.com/news/your-ebt-card-has-been-denied-700000-are-about-lose-their-extended-jobless-claims-benefits

“While virtually everyone has opined on the topic of the massive fiscal “cliff” set to take place on January 1, 2013, which could crush US GDP unless American politicians manage to find a way to end their acrimonious ways, most forget that a far more tangible cliff is set to take place much sooner, specifically over the next several months, as those currently collecting handouts from the government in the form of extended unemployment benefits (i.e., those who have been out of a job for a year) are about to get as angry as Germants pre-funding TARGET3, once the free money stops.”

dogsoldier on April 25, 2012 at 1:16 PM

sheikh of thornton on April 25, 2012 at 1:11 PM

Well there goes one of Angryed’s favorite points- that Obama is dominating in swing state polls.

I’m proud of my fellow Virginians.

Happy Nomad on April 25, 2012 at 1:20 PM

Just, a quick little response to those citing the fact that stocks are going good.

There are two primary reasons for this, the first is Apple. When their stocks do well it tends to benefit the entire tech sector, and Apples stock does well with great frequency.

The other reason is because stocks lately have rallied whenever rumors about more quantitative easing popped up, and those rumors tend to crop up after bad economic news. However for various reasons we’re unlikely to see more easing this year, when the markets realize this I expect somewhat of a sell-off.

Honestly though, the stock market has performed reasonably well regardless of the economic data for the past few years. Suffice to say, the stock market is global enough that its no longer a good measurement of local economic conditions.

WolvenOne on April 25, 2012 at 1:24 PM

The government is currently borrowing at a clip of 7% of the GDP which artificially props up growth to 2%. We are actually slipping into a double-dip faster than it appears. Our true growth number is negative. Facts kids

Bensonofben on April 25, 2012 at 12:35 PM

True and surprisingly ignored. Joe Biden goes around the country saying we have to borrow and spend money to keep from going bankrupt, and he’s not called out as crazy. Everybody who’s supposed to be financially responsible seems to be on the take. It’s amazing it’s lasted as long as it has. I fear the biggest depression we’ve ever seen is coming.

Gladtobehere on April 25, 2012 at 2:31 PM

BTW, were you opposed to the 1% Fed rate Greenspan had during Bush’s years?

Yes, I was. HUGE contributor to the housing bubble. But then Greenspan wasn’t Fed chairman, he just encouraged it. Trying to keep the “seasons” of the economy from happening is horrible policy.

Or is easy money OK during a Republican administration?

angryed on April 25, 2012 at 11:10 AM

Nope, it isn’t. But if Bush had let the 9/11 Recession happen, we’d have had President Kerry, so I guess some good came out of bad choices.

The federal government needs to get their manipulative, destructive hands out of it and let the market work. Yes, that means good and bad economies, but our worst depresession and biggest bubbles were all fueled by government intervention. Keep corporations from poisoning us and hold them to contracts, but otherwise stay the h e double hockey sticks out of the economy.

PastorJon on April 25, 2012 at 3:36 PM

I get it now. After his comments in the housing thread about how HE’s still making money so everything is fine, and his comments in here about how HE’s still making money so the market is fine, angryed has revealed himself to be one of those liberals who . . . pretends to care about the poor and other people, but really just wants a Democrat in office, no matter how bad that president is crushing the private sector economy, cutting off energy resources, destroying America’s image, etc.

As far as the stock market: The stock market is continually getting new money from retirement plans. There is a built in boost. It takes real fright for people managing those plans to shift to cash or treasuries. There is also a blind optimism. Very few investors listened to people like Peter Schiff that the bubble was going to burst, because they needed optimistic people to keep putting their money in the market.

It’s all going to pop. Municipal bond failures are coming, soon. Monetary policy is going to cause inflation to get even worse, soon. Gas prices are going to cause even more inflation. More people are going to be out of work as the inventories rise and orders drop.

I don’t like it, I don’t want it, but it’s the unavoidable result of Democratic rule. When Obama lost the house, he turned to his agencies to regulate the crap out of stuff.

While Romney is not pure, he’s a million times better than Obama. Conservatives can still have an impact in the House and Senate, that’s where have to focus while we get Romney elected.

PastorJon on April 25, 2012 at 3:48 PM

Don’t. You’ll only make him angry.

Bishop on April 25, 2012 at 10:36 AM

And what then? Does he get dumber?

Siddhartha Vicious on April 25, 2012 at 7:41 PM

The market is up partly because of the devalued dollar, and partly because of the continuing new investments from pension funds of all sorts. But those alone don’t account for all of the increase.

It is interesting to note the very low volumes, as the individual investors have not bought into the current long rally. It’s mainly institutional investors and banks. The price rises because it is based on the actual sales, not the volume. If the last sale of Apple is $600, that’s the closing price. It doesn’t matter if one share sold at that price, or a million.

So a combination of all these factors – along with the impending danger in Europe, and the problems in Japan, and potential slowdown in China, all of which make US equities more attractive to international investors – keep the market propped up.

It’s pretty obvious that when durable goods orders plunge amid rising inventories, and the market still goes up just because of one company’s good earnings report, it’s not being driven by the economy.

Adjoran on April 25, 2012 at 8:05 PM

The picture that starts this article is soooo appropriate. Closed caption :this ought a do it. Because Obama and I are going to really screw American this time around”.

MSGTAS on April 27, 2012 at 10:01 AM

Comment pages: 1 2