Recipe for Ugly

Ingredients:

.4% increase in retail sales in July

Rising 4 week average of Initial jobless claims

.3% rise in value of business inventories in June

Rising savings rate

9% rise in foreclosures in July

19% rise in trade deficit on declining exports

Anemic GDP growth

Rising fiscal deficit

Modest income growth

Tight credit

Likelihood of higher taxes next year

Separate autos and gasoline from numbers to extract negative retail sales.  Mix together with increase in savings rate, rising 4 week average of initial jobless claims, .3% rise in value of business stockpiles in June, rising savings rate and a 9% increase in foreclosures in July.  Gently pour mixture into a large bowl with a 19% rise in the trade deficit, anemic GDP growth, a rising fiscal deficit, modest income growth, tight credit conditions and the high likelihood of higher taxes in the future.

Use egg beater to mix the above to creamy texture.  Pour over a bed of Chinese rice and serve cold.

Yield:  1 healthy serving of an ugly economic outlook for the US.


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