Summary: Expansion contracting, output unchanged, new orders not rising, Philly Fed survey of manufacturing just collapsed, Europe is a disaster, unemployment growing again, etc., etc., etc. The “fiscal cliff” will result in the largest tax increase ever in American history. Tax takings are falling. Average adjusted gross income is falling. International trade imbalances are growing. Mortgage debt is increasing sharply. Matt Taibbi’s new report for Rolling Stone is a must-read, discussing the relationship of Wall Street to organized crime. Housing is not “in recovery” as is being touted in many circles. A crushing load of invisible inventory has yet to hit the market
