“Red Alert” Conditions: Economic Shock” Could Arrive Any Time While Global Conditions Are Rapidly Deteriorating And Options Markets Currently Suggest Over 20% Chance Of A Greater-Than-50% Drop In The S&P Over The Next Year
November 5th, 2012
Main Street’s in protracted Depression. Nearly 25 million Americans are jobless. Real unemployment approaches 23%.
Friday’s headline number belies dire economic reality. Main Street’s in protracted Depression. Nearly 25 million Americans are jobless.
Real unemployment approaches 23%. On November 6, Americans vote. Neither candidate proposed ways to create jobs. Obama’s done more to destroy them than create them.
Hours worked and income gains were missing in Friday’s report. Average weekly hours for production and non-supervisory workers declined 0.3%. Weekly manufacturing hours dropped by the same amount. So did average weekly earnings.
Global trade overall is contracting. So is US manufacturing. In mid-October, the Global Europe Anticipation Bulletin (GEAB) maintains “Red Alert” conditions.
“Economic shock” could arrive any time, it says. Global conditions are rapidly deteriorating. Western economies, the Middle East, North Africa, East and Central Asia are affected.
GEAB said, “Remember Lehman Brothers….in a few hours the world moved from ‘normal’ to ‘Red Alert’ mode!” Some analysts expect Lehman on steroids ahead. The fullness of time will tell.