Crisis Economic Conditions
The Worst is yet to come.
by Stephen Lendman
Global economic data signal trouble. Headlines reflect worsening conditions.
The Financial Times said America's dismal jobs report and world economic weakness raise "fears of a sharp global slowdown" or worse.
According to the London Guardian, Britain and Euroland face a "deeper recession after figures showed manufacturing output slumped at its fastest" rate in three years.
The Daily Telegraph said oil hit a 16th month low below $100 a barrel. At Friday's close, WTI crude stood at $83.26. Brent slumped to $98.63. Declining prices signal weakness.
The London Independent worried about "worldwide panic" as Dow prices plunged 275 points. It was the worst single day's performance since last year.
The Daily Mail commented on the "appalling state" of the world economy.
The Wall Street Journal groaned about the "grim jobs data." It wasn't the only sign of weakness. Separate Friday reports showed other troublesome signs. Expect economic conditions to keep heading south.
New York Times columnist Floyd Norris said Friday's jobs report "was worse than almost anyone expected."
"There is absolutely no prospect" for positive change soon. With Europe's recession deepening, America won't escape the fallout. When either area sneezes, the other catches cold, and it spreads.
Europe faces serious economic trouble. Plunging euro valuations reflect it. A crisis of confidence exists.
Bankia's insolvency was Spain's largest ever bank collapse. Other Spanish banks are troubled. So are Italian ones. Intesa Sanpaolo shares slumped to a 15-year low. UniCredit fell to almost generation ago valuations.
Europe's entire banking system risks collapse. Greek and Spanish banks face panic withdrawals. In April, Spanish retail sales plunged 9.8%. It was the sharpest monthly drop on record.
Chinese manufacturing declined for the tenth time in eleven months. Bank lending missed government targets by about $200 billion.