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Wednesday, October 15, 2008 1:51 PM

Empire State Manufacturing Collapses

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Inquiring minds are looking at the Federal Reserve Bank of New York Empire State Manufacturing Survey.

The Empire State Manufacturing Survey indicates that conditions for New York manufacturers deteriorated significantly in October. The general business conditions index dropped 17 points to a record-low -24.6. The new orders index also fell to a record low, and the indexes for shipments, unfilled orders, and inventories all declined sharply. The prices paid index eased significantly, to its lowest level of the year, while the prices received index also fell, although less sharply. Employment indexes were negative. Future indexes declined markedly with exceptionally large declines in the future new orders and shipments indexes.

Roughly 22 percent of respondents in the current survey said that their need for borrowed funds had increased over the past year, but a larger proportion, 31 percent, indicated that their need had decreased.
I keep asking "Why would any corporation want to expand into this environment?"

There is simply no good reason to do so. Overcapacity is rampant. Yet Paulson is attempting to Compel Banks to lend at Bazooka Point and Bush wants to take over banks in a Brave New World To "Preserve" Free Markets . In the meantime, widely respected economists are cheering this rapid march towards fascism.

That is the current sad state of affairs.

Mike "Mish" Shedlock
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