U.S. trade gap widens sharply in Oct. (imports to record $153.5B)

[UpInArms]

WASHINGTON (CBS.MW) -- The U.S. trade deficit widened by 8.9 percent in October to a record $55.5 billion, the Commerce Department said. The trade deficit was larger than expected. The consensus forecast of Wall Street economists was for a deficit of $52.8 billion. Imports rose faster than exports in October. Imports rose 3.4 percent to a record $153.5 billion. This is the largest monthly increase in imports since Nov. 2002. Exports rose 0.6 percent to a record $98.1 billion. The U.S. trade deficit with China widened to a record $16.8 billion in October compared with $13.7 billion in the same month last year.

...very short newsblurb...

8:30am 12/14/04 U.S. OCT. IMPORTS WIDEN 3.4% TO RECORD $153.5 BLN

8:30am 12/14/04 U.S. OCT. TRADE GAP WITH CHINA RECORD $16.8 BLN

8:30am 12/14/04 U.S. OCT. TRADE GAP ABOVE CONSENSUS $52.8 BLN

8:30am 12/14/04 U.S. OCT. TRADE GAP WIDENS 8.9% TO RECORD $55.5 BLN

[SHRED]

1. As Thom Hartmann says,...

"We are trading our country for a bunch of cheap plastic crap from Wal Mart"

http://www.thomhartmann.com/

[Career Prole]

2. Wheeeeeeeeeeeeeeee!!

There goes the dollar again! Euros, anyone?

[UpInArms]

4. checking the charts

it looks like there's some massive foreign currency intervention going on

http://www.weblinks247.com/exrate/

[Career Prole]

7. The were no doubt sitting there waiting to hit the Return key...

"Start the pumps!"
"Grab a bucket! Bail! Bail!"

[tanyev]

3. "larger than expected"

Keep seeing that phrase or "unexpectedly" in the economic reports. Maybe that word doesn't mean what they think it means.

[UpInArms]

5. IMHO it means that the "economists" are

drinking, bathing and playing in the koolaid

[Career Prole]

6. Makes you wonder about the quality of the economists

when nearly every development is unexpected, doesn't it?
They also try to lay off every problem on the price of oil, too.
"Baby needs a new pair of shoes, but won't get'em due to jump in oil futures!"

[seasat]

8. The media listens to economists accociated with brokerages

Instead of listening to accademic economists. Krugman and others have predicted these problems. Heck, I've only got a BS in economics and I could see it coming. The media is too busy paying attention to economists who work for groups that need to cheer lead the economy so the average joe will fork over money for their mutual fund. Of course they give the straight talk to the big money investors who can short the downturn.

[seasat]

9. Here's an interesting article from the NBER on the trade deficit.

(LINK)

From Article: The overall conclusion here is that the global economy is more vulnerable today than it seemed four years ago, when it already looked worrisome. If the current account closes up under relatively benign circumstances, then the effects may not be too traumatic, even though there will still likely be a spectacular short-run depreciation of the dollar, 20-40 percent on a trade-weighted basis. But if it occurs concurrently with another major shock, say to security or energy prices, or to consumer confidence, then the global output ramifications could be considerable, with interest rates rising, vulnerabilities in Europe and Asia due to appreciation of their currencies, and risks of financial crises.