brace for impact

[solarbird]

Overnight credit rate collateral rate last night. It's not a dislocation - it's back up to 2010 levels - but it's a substantial spike. CBS Marketwatch put out a BREAKING saying that the Federal Reserve had called in primary dealers for an emergency meeting at 9am; they came out of that a few minutes ago.

US dollar index fell about 1% this morning. It's bounced back a tiny bit.

Insiders are selling stock at extremely high level. NYSE and AMEX-listed stock sell:buy ratios combined are 13.10:1.

Revisions to previous GDP reports are massive. All from Marketwatch:

U.S. ECONOMY GREW 1.3% IN SECOND QUARTER VS 0.4% IN PRIOR QTR
*U.S. 2007-2009 RECESSION WORSE THAN ESTIMATED, REVISIONS SHOW
*U.S. 2Q CONSUMER SPENDING RISES 0.1%, WEAKEST SINCE RECESSION
U.S. SECOND-QUARTER EMPLOYMENT COST INDEX INCREASES 0.7%
*U.S. ECONOMY SHRANK 8.9% IN 4Q 2008 AFTER LEHMAN COLLAPSED

The best part is, corporate profits 2008-2010 were $343 billion higher than thought, but personal incomes were $265 billion lower:

Corporate profits now account for the largest share of gross domestic product since 1950 — 12.6%. Wages and salaries account for the smallest share of GDP since 1955 — 54.9%.

Fun times.

Comments

[elfs.livejournal.com]

You forgot the most beautiful quote:

S&P 500 profit margins increased by ~1.3% from 2000 to 2007. There are a lot of moving parts in the margin equation, but as shown, reductions in wages and benefits explain the majority of the net improvement in margins. This trend has continued; as we have shown several times over the last two years, US labor compensation is now at a 50-year low relative to both company sales and US GDP.

[JP Morgan's Eye On The Market for the week of July 7, Twilight of the Gods (http://www.investorvillage.com/uploads/44821/files/07-11-11_-_EOTM_-_Twilight_of_the_Gods__PWM_.pdf)]

[darksumomo.livejournal.com]

Would you mind if I link to your posts about Debtordammerung and the economy from Crazy Eddie's Motie News? This one in particular would make for good support for my most recent rant (http://crazyeddiethemotie.blogspot.com/2011/07/allow-me-this-rant-on-anti-tax-meme.html).

[solarbird]

Public posts may always be linked; please feel free. I also have echoes on Dreamwidth, and a collection-pointer-post for Parts I through IV here:

http://crimeandtheforcesofevil.com/blog/2011/07/debtordammerung/

I in fact like that one since it'll throw people at the band site, but don't worry about that if you want to. ^_^ It's an extra click which cuts on clickthrough.