Industrial Production Sinks As Capacity Signals Inventory End

Industrial Production Sinks As Capacity Signals Inventory End [View article]

"Given the surging inventory to sales levels, the damage to real Americans is about to be exacerbated when production is cut further and layoffs begin which further reduces demand. Then we figure out how much of the financial engineering of the last few years stands up."

We Nattered: This is going to turn into a dead pool.... 47% of all SP500 revenues are generated overseas. Oil patch layoffs (responsible for 70% of the jobs since 2007) will hit round 2, cascading into the service sector, add your comments above, stand back then watch HY and leveraged EM dollar debt start blowing up. Bonds are already showing the way, it wont take a Bear Stearns, just a few defaults and declining SP500 revenues will stop the drunken party and carnage will ensue. The financial engineering won't stand up, as the exits have been narrowed (everything is in funds, NOT banks) and the market making has been crippled. The best analogy would be, a school of fish, drowning, in water.

Try these for a better understanding of the market dynamics: 
http://bit.ly/1EdNzAU

http://bit.ly/1EdNBsu