– Recession Looms – Business Inventories-to-Sales Surge To Cycle Highs:
Business Inventories were unchanged in August (less than the expected 0.1% rise) with manufacturers down 0.3% – bad for Q3 GDP but Business Sales tumbled 0.6% MoM (the biggest drop since January), down across the board. So clearly no inventory liquidation has started yet (so the pain is yet to come) and this has driven the inventory-to-sales ratio up to 1.37x – the highest in this cycle. The last 2 times the ratio was at this level, the US was in recession.
…
Beyond comprehension, is somebody extending the cliff edge on a daily basis?
A 15% increase in motor vehicle inventories means only one think, nobody is buying.
But it’s ALL durables AND non-durables.
That means nobody is buying anything.
This is classic stagnation, but essential goods prices continue to rise, which is stagflation, the classic pre-cursor to a crash.
Why can’t they get it over with? What is their real agenda?
Are they waiting for something? It can only be a false flag big event as predicted by so many.
http://wolfstreet.com/2015/10/09/last-time-this-ratio-reached-that-level-stocks-crashed/