Wednesday, February 10, 2016

INVENTORIES, THE MARKET AND OUR ECONOMY ...........

INVENTORIES, THE MARKET AND OUR ECONOMY

Too much mal-invested, Fed-fueled, hope-driven "if we build it, they will buy it" inventory... and not enough actual demand. 

This has never, ever, ended well in the past - so why is this time different?

At 1.32x, the December inventories/sales ratio is drasticallyhigher than at year-end 2014 and is back at levels that have always coincided with recessions...



The current spread between sales and inventories is now at a record absolute high...



As Sales tumble and inventories continue to rise...



And all because The Fed (ZIRP) and Government (Subsidies) are breathing life into Zombies when they should be allowed to die not continue to be propped up by increasing levels of debt. STUPID IS AS STUPID DOES!

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