Wheels off the Recovery, Depression is On

Home sales dropped 27% in July to a 15 year low as banks won't lend and people won't buy, no matter how low the price. The US now has a 12 month supply of housing sitting empty with no takers. There just is no confidence in this government or business leadership left in america.

The DOW reacted negatively, with stocks declining for two straight weeks, reaching a six week low on slightly above average trading. Investors are down about 4% for the year, as we enter the September gloom. DOW 10600 is gone and today stocks dipped below 10000 briefly.Smart money continues to flee stocks for bonds, seeking the lower returns but safety of bonds. Irish sovereign debt was downgraded after market close today, guaranteeing another market bloodbath Wednesday.

KEITH SPRINGER, PRESIDENT, CAPITAL FINANCIAL ADVISORY SERVICES, SACRAMENTO, CALIFORNIA:
"The wheels are coming off the recovery. You're seeing no aggregate demand at all. You have $12 trillion in stimulus and the best you can do 2 to 2.5 percent gross domestic product ... you should be at 7 or 8 percent."

But Obama shill, Joe Biden says that the "recovery is moving in the right direction".

Positive gross domestic product readings and other mildly hopeful signs are masking an ugly truth: The US economy is in a 1930s-style Depression, Gluskin Sheff economist David Rosenberg said Tuesday.

Well Keith and Joe, the wheels have been off the economy since 2008 and like Dave says, we are in a depression. Is that the direction that Joe had all along?

Buy more ammo.