Quoting yesterday’s “Crisis Progress Report (8): Acceleration,”:
Just as in the 2008 crisis, the financial stress points are increasing. If it has not already been reached, the point of inflection is near….
The point of inflection is the lift off where debt induced contraction and financial stress generate uncontainable and unstoppable momentum and the financial crisis greatly accelerates.
“If it has not already been reached, the point of inflection is near,” may have been too cautious. Check out the headline flow (linked to the original articles) on Zero Hedge over the last twenty-four hours:
Did The IMF Just Open Pandora’s Box? (Now even the IMF is admitting Greek debt is unpayable.)
Shale Drillers About To Be “Zero Hedged” As Loss Protection Expires (Drillers’ hedges—futures contracts undertaken some months ago to sell oil at prices much higher prices than those prevailing now—will roll off in the next few months.)
JPMorgan Banker: “We Can’t Make Money Anymore…” (If they think it’s bad now, wait until their loan book starts going sour.)
Plunge In Export Prices Is Now Worse Than The Great Financial Crisis (Stop SLL if you’ve heard this one: debt contractions are deflationary.)
The Last Time This Happened In Credit, Bernanke Unleashed QE3 (High yield credit is the canary in the financial coal mine, and right now this canary is in extremis.)
Since 2007 The US Has Lost 1.4 Million Manufacturers, Gained 1.4 Million Waiters And Bartenders (The former pay about twice what the latter do, which helps explain why the economy sucks despite all those “jobs” Obama brags about creating.)
Factory Orders Scream Recession: Annual Drop Biggest Since 2008 (Soon factory orders will be screaming Depression.)
Part-Time Jobs Surge By 161,000; Full-Time Jobs Tumble By 349,000 (Another “clue” for clueless mainstream economists why the economy sucks despite the “jobs recovery.”)
Contagion Continues: Italy, Spain Stocks Tumble To Post-Greferendum Lows (From yesterday’s SLL: “Every unraveling strand in this tapestry is woven in with many others, which in turn unravel.”)
Chinese Stocks Plummet Despite Government Threats To Shorts, Europe Lower, US Closed (More unraveling strands.)
SLL hereby amends the sentence from yesterday’s post: “If it has not already been reached, the point of inflection is near,” to: It has been reached, the point of inflection is here.