One who intends to leave others better off for his having existed.

3/11/14

Wholesale Sales and Auto Inventories = Economic Slowdown = Here Comes the Next Recession

http://www.zerohedge.com/news/2014-03-11/wholesale-sales-collapse-most-5-years-autos-lead-inventory-surge

If sales of produced products from centralized inventories fall, chances are retail sales to consumers fell.

If retail sales to consumers fell, inventories are not resupplied as there are still un-purchased products on the shelves at point of sale outlets, like auto inventories below.

The more retail sales fall, the more retail stores close, as we have seen over the last few weeks.

When retail stores close, the laid off employees reduce spending, affecting the rest of the economy.

If wholesale inventories rise too high, manufacturers lay off assembly line workers, whose retail spending falls.

http://www.zerohedge.com/news/2014-03-11/wholesale-sales-collapse-most-5-years-autos-lead-inventory-surge

Laid off workers with retirement plan loans become due after termination, or the monies are taxed as income plus what could be penalties if under 59 1/2, which often leads to IRA rollover withdrawals to cover the tax payments, which lead to more taxes.

When unemployment benefits, home equity line and credit card available debt limits run out, and the IRAs empty, monthly bills can't be paid.

America and most of the developed world's citizens in the bottom two thirds of the economic ladder are in much worse shape as a group than in 2007.

I believe this time will hurt more and longer than last.

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