The US recession now in full effect

What’s interesting about state governments is that many of them are required by law to balance their budgets. This leaves them with no option but to cut services; and how do they do this? Cut staffing. If you think the unemployment figures in the US are bad at the moment, you haven’t seen anything yet. Wait until the state budget season gets going.

Sounds like the “Leaving town tax” form the Simpsons, to get the last few dollars from the movie studio as they run out of money.

Scarey

**Food bank says need keeps rising **
ohio.com/lifestyle/26368324.html

Rio Grande Valley food bank is running out of supplies
bizjournals.com/sanantonio/s … ily22.html

Food bank scales back hours
thedowneypatriot.net/wordpress/?p=434

**Local Sam’s Club might send donations to Peoria food bank **
wjbc.com/wire2/news/12780_Sa … 115222.htm

These stories do not make the mainstream news but I have noticed these stories have been increasing in frequency in the last 12 months, to the extent there is one or two a day reported by local news sources from the USA.

The latest from Peter Schiff,in it he analyses the current state of denial people are in.

Denial is of course one of the final stages in the many phases of bubbles/manias and is certainly apparent in Ireland,England and the rest of Europe at the moment.Interesting reading.

The NY Empire State Manufacturing index came in at -7.4% versus expected +3.7% which may explain some of the downdraft in the rest of the stocks?

Or is it just the likely intensification of the credit crunch and the fact that the banks aren’t going to be doing any IT spend any time soon that is weighing on the DOW ex-AIG and the NASDAQ?

From Europacific:

September 15, 2008