First news is a question, can we please admit that we are in a recession? Please?
The economy contracted at an 0.3% annual rate last quarter, with a a 6.4% rate decline on purchases of non-durable goods, and a 3.1% rate decline on consumer spending.
This is not just a “recession”. This is a big MoFo.
There are predictions of a rate approaching 5% in the 4th quarter.
In any case, credit remains tight, though there appears to be some loosening, see here and here.
We are also seeing the first growth in commercial paper since the collapse of Lehman.
However, we also just saw 30 year mortgage rates spiked by 40 basis points, even though the Fed cut rates.
This ain’t over, and the Japanese have released details on a ¥ 5 trillion stimulus package, and the Germans have done so with a €30 billion stimulus package.
Still, the sounds of an oncoming train continue to drive oil prices down.