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Global shipping index down by 30%.

Posted by Adrian on January 21, 2008

It’s amusing, or actually quite sad the denial of the US recession (depends which way you look at it). Sad, that a disaster in the housing market has caused not only turmoil in the global credit markets, but more so the personal pain of thousands of Americans that have lost their homes.

Amusing that some bank economists and their man with the master plan (Ben Bernanke) are in some delusional optimistic fantasy land, with misleading claims that everything is ok. The fiscal stimulus ($150 billion) and the coming rate cuts that the Federal Reserve will deliver, make no difference to the larger US economy except the continuing destruction of the US dollar.

The latest indicator showing major declines is the Baltic Dry Index (shipping index) now at 30% and declining, yet the denial continues – from marketwatch, Bank of America economist quote:

“Though the decline is “probably consistent with some slowing in global growth,” wrote Bank of America analyst Robert Sinche, “the dire economic scenario that some are suggesting is signaled by the BDI correction overstates the case.”

Amazing, literally every bellwether indicator you can think of is showing sharp downturns in economical activity (note the USD dollar index now at 76.39), with sharp increases in inflation, oil and also look at volatility index (^VIX) Summary now 28.51 points.

refer to index:

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marketwatch article

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