On July 9, the Economic Cycle Research Institute (ECRI) published its weekly leading index (WLI). And it fell for the fifth week in a row.
- On June 4, it crossed the zero line with a reading of minus 3.6 percent,
- On June 11 — minus 5.6 percent,
- On June 18 — minus 6.8 percent,
- On June 25 — minus 7.6 percent,
- And for the week ending July 2 — minus 8.3 percent!
The above is very important. Look at the chart. The index drops and a recession or depression starts. A minus 10 means (roughly) an immediate depression. Minus 5 is bad. Look at these numbers above.
This is backed up by a similar collapse in almost all the indexes and other numbers. Most notably the Baltic Dry Index, which is a big indicator of the direction of the economy in the near future, has dropped off a cliff.
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