Weekend News, May 17-18, 2008
05/18/2008
The most amazing thing to watch is the massive disconnect between what I am reading and seeing (we're in a recession and the mood is dark) and the stock market. Normally, one would expect a consumer-led recession to result in a 30%-40% decline in the stock market, but instead, the market is within a few percent of its all time highs. What gives? The articles below provide confirmation of the fact that we are firmly in a recession, no matter what the official statistics are claiming.
Inflation pressures ease in April despite biggest food price jump in 18 years (May 14 - AP)
Inflation here, there and everywhere (May 14 - FT)
U.S. Builders Broke Ground on Fewest Houses Since '91 (May 16 - Bloomberg)
Consumer sentiment falls in May to lowest since 1980 (May 16 – MarketWatch)
Foreclosure flood: 1,000 auctions per day in California
(May 15 – LA Times blog)
U.S. Economy: Manufacturing Weak as Expansion Falters (May 15 - Bloomberg)
Opposition Builds to $300 Billion Government Mortgage Bail Out (May 14 - Forbes)
Dollar rally, leaks put fresh focus on G7 meetings (May 15 – MarketWatch)
Fed's Direct Loans to Banks Climb to Record Level (May 15 - Bloomberg)
ECB concern over liquidity scheme (May 15 – FT)
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