Economic News: A Cloud That Lacks A Silver Lining

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Late news out of the economy track system is that the buildings are collapsing all around.

After Goldman Sachs (GS) panicked and said that oil would rise to $141, crude immediately spiked to $128 as traders jumped on the railroad of self-fulfilling prophesies. It will get worse. US refineries reported that they are making more diesel and less gas. Look for the pump to read $5 a gallon by Labor Day.

In Ann Arbor, the Reuters/University of Michigan preliminary index of consumer sentiment dropped to a 17-year low with a figure of 59.5. According to Bloomberg, this "compared with an average reading of 85.6 in 2007." That is lower than the Nautilus was able to go in Jules Verne’s "Ten Thousand Leagues Under The Sea".

Hard news.

Douglas A. McIntyre