Some Unpleasant Data

I stumbled across several graphs at that speak volumes about the real state of the economy.

First, take a look at the commercial paper market:

Now take a look at nonresidential investment:

Jake points out that nonfinancial companies have been opting for longer funding maturities and moving away from the CP market but as you can see there is still a tremendous decline in paper outstanding. If the Fed wasn’t backstopping this market one wonders where it would settle.

The decline in nonresidential investment is very worrisome. This is an economy’s seed stock. It’s what drives future productivity and job creation. I think the chart probably paints a pretty good picture of the future expectations of business at this point in time.

But, cheer up, things could get worse. You could live in Europe and have this to deal with:

About Tom Lindmark 401 Articles

I’m not sure that credentials mean much when it comes to writing about things but people seem to want to see them, so briefly here are mine. I have an undergraduate degree in economics from an undistinguished Midwestern university and masters in international business from an equally undistinguished Southwestern University. I spent a number of years working for large banks lending to lots of different industries. For the past few years, I’ve been engaged in real estate finance – primarily for commercial projects. Like a lot of other finance guys, I’m looking for a job at this point in time.

Given all of that, I suggest that you take what I write with the appropriate grain of salt. I try and figure out what’s behind the news but suspect that I’m often delusional. Nevertheless, I keep throwing things out there and occasionally it sticks. I do read the comments that readers leave and to the extent I can reply to them. I also reply to all emails so feel free to contact me if you want to discuss something at more length. Oh, I also have a very thick skin, so if you disagree feel free to say so.

Enjoy what I write and let me know when I’m off base – I probably won’t agree with you but don’t be shy.

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