The Myth of the Manufacturing-Led Economic Recovery
By: Andy Sutton
Aug 04, 2010
They still don’t get it – or perhaps they do and just won’t admit it. Either way, it doesn’t matter much as the jesters, namely Msrs. Bernanke and Greenspan, continue to chirp their assigned lines, playing good cop/bad cop with the USEconomy. Right now, Bernanke is the good cop, pointing to increasing wages and the likelihood that the consumer will once again step up and rescue us from the grips of the double dip. On the other side of the room is Greenspan, talking about how that double-dip is still possible, although extremely unlikely.
Today the mainstream press jumped on the bandwagon and trumpeted the smashing success of the ISM’s manufacturing index for June as an indicator that all is and will be well. Stocks soared, bonds shed a point, and oil jumped over $80/barrel for the first time since May.