One Of The Largest “Too Big To Fail” Banks In America Boldly Declares That “The Wheels For A Slowdown Are In Motion”
One Of The Largest “Too Big To Fail” Banks In America Boldly Declares That “The Wheels For A Slowdown Are In Motion” by Michael Snyder for The Economic Collapse Blog
Now even one of the biggest banks in the entire country is openly admitting that a “slowdown” is upon us. Over the past week or so, the mainstream media has been filled with chatter about the possibility of a recession and what that would mean for the Trump campaign in 2020, and we continue to get more evidence on a daily basis that economic activity really is decelerating. All of the numbers are pointing in the same direction, and I am going to share some brand new figures with you in this article. But first, I want to address what Morgan Stanley just released to the public. In a note that was just published, Morgan Stanley’s chief economist unequivocally stated that “the wheels for a slowdown are in motion”…
The downtrend in some global economies is becoming contagious as weakness in the manufacturing sector begins to spread, according to Morgan Stanley, which warned clients that “the wheels for a slowdown are in motion.”
“Even as we have been revising our growth projections lower, we continue to highlight that the risks remain decidedly skewed to the downside,” Chetan Ahya, the bank’s chief economist, warned in a note published Tuesday. “We expect that if trade tensions escalate further … we will enter into a global recession (i.e., global growth below 2.5%Y) in three quarters.”
When “too big to fail” banks throw in the towel and start warning of “a global recession”, that is a really bad sign.
But let’s give Morgan Stanley some credit for at least trying to be honest. The economic numbers have progressively gotten worse, and we just learned that domestic shipments of RVs are down a whopping 20 percent so far in 2019. The following comes from Zero Hedge…
To elaborate more on our July report titled “Trade War Chaos: Trump’s Tariffs Crash American RV Industry,” it seems the RV industry continues to flash a recessionary warning light.
The Wall Street Journal reports that Elkhart, Indiana, is the industrial hub of American RV manufacturing, has been used by analysts and economist as a leading indicator of consumer demand for luxury items.
Domestic shipments of RVs to dealers have plummeted 20% so far this year, compared to the same period last year, after dropping 4% in 2018, according to the Recreational Vehicle Industry Association.
The RV industry is considered to be “a great bellwether of the economy”, and right now it is screaming that a recession is coming.
Meanwhile, more bad news continues to come out of the real estate sector, and it turns out that even wealthy people are now “pulling back” from buying homes…
Wealthy buyers are pulling back from some of the most expensive housing markets in the U.S., the latest sign that sky-high prices and fears of a recession are weighing on a key sector of the economy.
Toll Brothers Inc., the nation’s largest publicly traded luxury-home builder, said late Tuesday that purchase agreements fell 3% from a year earlier, worse than a decline of less than 1% that was expected by a Bloomberg survey of six analysts. The company’s orders in California, home to some of the priciest markets in the country, tumbled 36% from a year earlier.
Of course whenever I start bringing up numbers like these, some skeptics point to the employment statistics as “proof” that things really aren’t so bad.