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Bernard L. Madoff

Mike Shedlock sees [bleedingly obvious] Armageddon

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Remember that 70% of Australia's economy is services...

Australia Services Index Plunges to Significant Contraction; Bleakest of Views From Retail Shops; Retail and Housing Bloodbath Coming Up

Two more signs surfaced today that suggest Australia is headed for if not in recession.
Australia Service Index Components

Index sank to 46.7 from 51.9

Selling prices fell to 44.2 from 46.9

Employment measure slid to 47.5 from 51.2

Sales declined to 47.5 from 49.4

New orders plunged to 45.6 from 54.1

Wages indicator dipped to 57.7 from 57.8

This is nothing short of an absolute disaster. That wages have held up is not good news either. Think retailers or any other service industries will be hiring? If so, think again.

Bleakest of Views From Retail Shops

Mike recognises the quality of the Main Stream Media...

Retail and Housing Bloodbath Coming Up

There is so much misguided drivel in the article that I hardly know where to start.

Here is some nonsense about a shopper's sweet spot: "For shoppers, it's something of a sweet spot. They've never had it so good. The $100 you spend in a supermarket buys you about 5 per cent more in goods than it did a year ago."

Retail prices in Australia are absurd (indeed, think wildebeeste crossed with an ostrich). A 5% reduction in prices is hardly a bargain. As for the notion mining will carry the economy, forget about it. Commodity prices are going to plunge, and besides, commodities are not a big driver of jobs anyway (indeed, but the ostbeeste believes the Coal industry in Moronbah is making him rich in North Melbourne, he'll realise too late and scream why didn't resources save me on ACA/TT).

There is no "floor" under retail. The bottom is going to fall out, and unemployment is going to soar. In turn, rising unemployment will clobber Australia's already deep-in-trouble housing sector.(you can smell it now)

As for small shops, they are completely doomed. Store owners with little leeway on wages will not get the income they need to pay taxes, interest, utilities, and rent.(yep)

Expect an across the board retail and housing bloodbath because one is coming.(tick tock tick tock)

smiling-irish-eyes.gif

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Osbeeste :thumbup::laugh:

Mish is getting excited as his calls on Australia are coming to fruition. Never read him as bearish on Australia as this article.

Anyhow, the media are getting the Osbeeste greased up and ready for a proper royal shafting. There have been a few articles that are preparing Osbeeste for a 'soft' landing. The best one was about how people are choosing part time work over full time for a better 'work/life balance' - don't worry folks if you get your hours cut, just think of the extra time you'll have to do stuff. Honestly, do they think people work for fun and for something to do? Are we all so wealthy that we can cut our hours?

Also read that there is no 'trickle down' from the mining boom were supposedely having - oh dear. Hope the Osbeeste haven't leveraged themselves up on the back of it? :blink:

Laughing at how Wayne Swan is now turning on the mining magnates as the economy isn't exactly going to plan. It seems like yesterday that he was talking of a mother of all mining booms and the China miracle we'll all benefit from. It's going to be theatre watching this play out, the blame game.

(sorry, can't be arsed to dig out the articles - sure there will be plenty more in the coming weeks and months)

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A bit of opinion about the recession as opposed to the facts, but the base stories are good.

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given the recent china growth of only 7.5% , markets here have reacted quite strongly. 7.5% isnt exactly sluggish. The stats in the article are not good for here. will the poor news form china make our econ actually fall more. or is 7.5% enough to keep us going?

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