Karl Denninger, "Fed's Liar Book (Beige Book)"

"Fed's Liar Book (Beige Book)"

by Karl Denninger

"Reports from the twelve Federal Reserve Districts suggested continued growth in national economic activity during the reporting period of mid-July through the end of August, but with widespread signs of a deceleration compared with preceding periods. The economy is falling off a cliff. My favorite Sushi Place went under the other day. Nobody has a damn job. EnTITlement spending is holding the rioters at bay - for now. Consumer spending appeared to increase on balance despite continued consumer caution that limited nonessential purchases, while activity in the travel and tourism sector picked up relative to seasonal norms.

Dogfood (for human consumption) sales have increased.

Labor Day was busy - with people drowning their joblessness. Reports on consumer spending were mixed but suggested a slight increase on balance. It's supposed to be damn busy with the last big weekend for the summer. It was "slightly increased". Yeah, it was that bad. (As an aside I could have shot a 155mm howitzer down the road here on Monday and not killed anyone) Several Districts noted an emphasis on necessities and lower-priced goods.

Dogfood. It's big. Get in on it before everyone else does.

Spending on big-ticket items such as expensive consumer electronics was weak according to Philadelphia, Richmond, and Dallas. Remember Circuit City? Best Buy is next. New York reported strong tourist activity that kept hotel occupancy rates high in Manhattan despite an increase in hotel capacity this year. The we can steal it all! city is doing better. What did you expect?

Providers of information technology (IT) services such as computer software saw substantial revenue and sales gains in the Boston and Kansas City Districts. The IRS bought more computers. Bend over suckas! Recent weakness was most notable for construction-related products, according to reports from Cleveland, Richmond, Chicago, Dallas, and San Francisco. We're still building strip malls - the last builder hasn't gone broke. Yet. Activity in residential real estate markets declined further.

It's spelled D E P R E S S I O N.

Demand for commercial, industrial, and retail space generally remained depressed. Crap! Did I use the "D" word? Oh oh... Lending activity was stable to down slightly on net. Most Districts reported little or no change from existing low levels of commercial and industrial lending, as businesses remained quite cautious about expansion plans. Businesses are tired of being bent over the table by banks and are erecting their middle fingers in response. Demand and extraction activity increased for producers of natural resource products, including oil and other items used for energy output. Except where Obama has banned it, of course - which would be where all the oil actually is. Uh, yeah.

Wage pressures remained modest overall. Of Districts commenting on wages, most identified little or no upward pressures or increases. Dallas reported that wage pressures were "generally nonexistent," WORK HARDER, GET PAID LESS, OR GET FIRED!

We got it Ben. Now will you get? The American people will settle for "get out!" Thanks in advance."

- http://market-ticker.org/