Recession Redux?

 

You saw manufacturing just really rein in and you saw inventories drop throughout the supply chain. If we had a default, that would be one of those worst-case scenarios.
Courtesy of Volvo Construction

Federal Reserve Board Chairman Ben Bernanke has said that the shockwaves from a U.S. debt default would be felt through the entire global financial system.

On July 13, Bernanke told lawmakers on Capitol Hill that failure to reach a deal by the Aug. 2 deadline could throw the financial system into enormous disarray and have major impacts on the global economy if Washington halts debt payments.

For U.S. manufacturing, a reprise of 2008 to 2009, when everything just dried up, is certainly possible. That brings up painful memories. Manufacturing just kind of fell of a cliff, which was an interesting phenomenon.

– Courtesy of Industry Week, Josh Cable