Thursday, August 20, 2009

More Evidence of Economic Non-Stabilization

June freight rail traffic was down 19.5% in June 2009 from June 2008. This was the eighth straight double-digit monthly rail carload decline. This statistic is important because there is a very high correlation between rail freight traffic and GDP. Interestingly it would appear from scanning the report linked below, that the cash for clunkers program might have caused a brief bounce in automobile shipments. We know from the Edmunds.com report issued a few days ago that bounce in auto sales was quite brief. Here's the link to the report, which is quite interesting:

Rail Freight Shipments Plunging

2 comments:

  1. Home sales were up in July and Bernake declares the U.S. Economy is on the verge of recovery.

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  2. ROFLMAO. Bernanke doesn't realize what an idiot he looks like to everyone who knows what's really going on!

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