Economics Update

Well, I just overheard on the radio that the Baltic Dry Index, a measure of the cost of shipping, just fell to a more than 5 year low.

Ships are sitting idle as manufacturers try to reduce inventory.

We are also seeing this at the other end of the manufacturer to market equation, with retail sales falling 1.2% in September...And remember, this was before Lehman imploded.

The Federal Reserve's Beige Book, a report of the state of the economy, is pointing down too, as is the New York Fed's Empire State Manufacturing Survey.

In energy, crude oil ended at less than $75/bbl today.....One note, when I predicted some time back that we would never see the south side of $100/bbl, I was wrong.

Interestingly enough we are also seeing reports that Paulson can give money to banks, but he can't make them lend it out, which would seem to imply that we need someone more interventionist at the helm.