Industrial Production Plunges Most Since March 2009
by Tyler Durden
In one more example of why we are going to need more-er and open-ended-er QE from the Fed, today’s dismal data rolls on. Industrial Production dropped 1.2% MoM – its largest drop since March 2009 – and missed expectations by the most since December 2008. The market (expectedly) is unimpressed and stable – fully aware that the Fed’s new infinite QE will simply be expanded to an infinte-er QE should things go from worse to worse-er. To add more salt to the wound, Capacity Utilization dropped to its lowest of the year and missed expectations by its most in 16 months. 15x P/E multiples here we come – all supported by moar hockey-stick growth trajectories, infinity +1 printing, and a status quo who needs moar commissions. So much for cleanest dirty shirt, eh? It seems ‘they won’t come’ in our ‘if we build it’ economy – as factories go quiet from the over-exuberant mal-investment of channel-stuffers.