The final factory report for June
is out, and it contains no good news. Most notable is a rise to 1.29 of the inventories to shipments ratio. Non durable goods shipments down 2%, following a drop in each of the previous two months.
Below is a detailed post on today's ECB slapstick comedy routine. The US economy is in a strikingly weak position, and it would have been nice if the Europeans had not decided to shoot themselves in the foot to see if everyone would laugh and buy. I can hardly believe this morning's events - under the circumstances, it was kind of like watching the Dragon set his hair on fire to boost confidence.
I have no further comments, except that oil prices are laughably overblown; the NG boom is showing up in oil in the form of propane, and this tower of Babylon is doomed to tumble. In the latest four week period, US propane production is up 47.5%, and propane inventories are up 36% compared to last year. Replacement effects are beginning to kick in. The next chute is somewhat longer than the last one.