America is on a holiday - The Daily Reckoning
The Daily Reckoning by Bill Bonner
On This Day - 5 September 2011
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America is on a holiday A  A  A

New York, New York

America is taking a holiday.

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According to the Judeo-Christian religion, God gave man the days of the week and the weeks of the year.

But he held back something - holidays. He kept the seventh day for Himself, for example.

And now man has gotten into the act too. He's created holidays of his own. Today is one, intended to celebrate 'labor,' but really just a way of throwing a bone to the trade unions.

Still we respect it...just as we do all holidays. Which is to say, we're happy for a change of pace. But

But there is reckoning to be done anyway.

Friday, stock markets were walloped...after investors realized that they have a Great Correction on their hands, not a recovery.

The Dow was down more than 250 points. Gold shot up $47.

So, from our point of view...one went in the direction we expected. The other did not. Gold should not be going up...unless there is something we don't understand, which is very likely.

But since it's a holiday, we're not going to try to figure it out.

Instead, we present more evidence of the Great Correction from the website Pragmatic Capitalism:


After a persistent steady year over year climb in weekly rail traffic trends, the data has finally succumbed to the weakening economy and turned negative. While this is only a one week trend it is worth keeping an eye on the trend. Recent data has been positive, but persistently weak. The last time the monthly data turned negative was January 2007 before the economy began slipping into a deep recession. Charts have been attached below.

The AAR elaborates on this week's data.

"The Association of American Railroads (AAR) today reported a slight dip in weekly rail traffic, with U.S. railroads originating 299,943 carloads for the week ending August 27, 2011, down 0.8 percent compared with the same week last year. Intermodal volume for the week totaled 236,051 trailers and containers, down 0.5 percent compared with the same week last year."

That is all.

Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.

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