Get Ready for MASSIVE layoffs.

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Durable Goods Collapsing

While there's talk that the Big Bailout Deal is close, what this country doesn't need right now is another economic problem, but here's a very, very big one: The new durable goods orders out this morning show orders for big ticket items collapsing:

"New Orders New orders for manufactured durable goods in August decreased $9.9 billion or 4.5 percent to $208.5 billion, the U.S. Census Bureau announced today. This was the largest percent decrease in new orders since January 2008 and followed three consecutive monthly increases including a 0.8 percent July increase. Excluding transportation, new orders decreased 3.0 percent. Excluding defense, new orders decreased 5.0 percent.

Shipments Shipments of manufactured durable goods in August, down following two consecutive monthly increases, decreased $7.7 billion or 3.5 percent to $210.1 billion. This was the largest percent decrease in shipments since December 2002 and followed a 2.3 percent July increase.

Unfilled Orders Unfilled orders for manufactured durable goods in August, up thirty of the last thirty-one months, increased $3.0 billion or 0.4 percent to $827.2 billion. This was at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.8 percent July increase.

Inventories

Inventories of manufactured durable goods in August, up thirteen of the last fourteen months, increased $2.4 billion or 0.7 percent to $338.5 billion. This was also at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.9 percent July increase.

Capital Goods Industries

Nondefense

Nondefense new orders for capital goods in August decreased $5.6 billion or 7.5 percent to $68.9 billion.

Defense

Defense new orders for capital goods in August increased $0.9 billion or 9.4 percent to $9.9 billion.

As durables orders collapsing, on top of all the banking issues, will likely drive a large increase in layoffs/firings over the next couple of months as companies adjust staffing levels to cope with lessening demand. And already there's this:

Mass Layoffs Up

The Road to Global Economic Collapse

As we continue down a road which sure looks like the onramp to a global economic collapse from here in the Texas outback, there are all kinds of contradictory signs and portents.

For example, one headline says "China Banks told to halt lending to US Banks - SCMP" - that's the South China Morning Post - a major news outfit. But shortly after that story crossed the wires, we read how "China denies shunning foreign banks..." A couple of decades of doing news analysis has taught me that where there's smoke, there's often fire, so we'll watch the smoke and see if flames break out.

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The George Bush speech last night stopped short of being as harsh as we tend to be around here, but still, he's admitting we're in the midst of a financial crisis. Say, you don't think he bears some responsibility for this, do you? Naw...'course not...