New orders for durable goods fell 4.2 percent last month. Orders have dropped two out of the last three months. When the orders for durable goods drops, it can herald the beginning of the end of whatever business expansion we’re in. It’s the scary canary in the economic coal mine. However, falling orders for durable goods does not necessarily signal the beginning of the end, but it is always the first step.
Durable goods are those things that ordinarily last three or more years, like pipes, computers, cars, toilets, stereos and stuff like that.
We should keep an eye on financial events as they unfold because the next recession could come quickly and with savage intensity since the rich are getting an ever greater share of the total national income through their political power over Republicans and Democrats alike. The one percent heisted 93 percent of the total national income growth from 2009 to 2010, and it is likely their share is about the same for the 2010 to 2011 fiscal year. That means there’s less money among the 99 percent to demand the goods and services necessary to keep the economy floating and to increase the number of jobs, while the rich have more money and political clout to demand and get legislation that redistributes even more income into their already fat wallets.
So hold on to your jobs, because the recession could be coming soon. Oh, and by the way. We’re still in the Second Great Depression that began in December 2007.