Grim Holiday Season Tidings - by Stephen Lendma
Some weak global economies are heading for collapse.
New global data show grim results. China's real estate was especially bleak. It reported 70% of its 70 largest cities experiencing home price deflation, up from 47% in October. Rarely ever does this bode well for economic prospects or banking.
As a result, copper is down 0.7% and 25% in 2011. The base metals complex also dropped 1%.
In Japan, department store sales were down 1.9% year over year, the fifth consequence negative reading. In October, Spain's service sector declined 2.7% year over year.
In America, recent data reflect downtrends in restaurants, clothing, jewelry, department, grocery, and drug store sales, household appliances, clothing, chemical products, electrical and communication equipment, machinery, paper and wood products, semiconductors, and computers and accessories.
Wage growth is especially weak, showing declines in four of the past six months, and 1% annually year over year.
Global economies also show weakness. Notably, it's showing up in negative paper boxes and containers four consecutive months and in free fall year over year.