Off the Cuff: Sounding Like a Broken Record

In this week's Off the Cuff with Mish & Chris podcast, Mish and Chris discuss:

• Europe's Deepening Recession
  • The official GDP data worsens
• Reckless Lending 2.0
  • The Poway, CA Ponzi 
• Anticipating a Big Move for Gold
  • After nearly a year of range-bound trading

So far the summer has been relatively dull, especially while the world has been glued to the Olympic action in London. The same risks we've been watching all year are all still in play, but there have been few newsworthy catalysts (up or down) of late. With things becalmed, it's hard not to sound like a broken record in ringing the same warning bells that we've rung all year. But despite the lack of developments (perhaps in spite of them, given that no fundamental risks are improving), Chris and Mish are very unnerved by the current doldrums. Digging under the calm waters, they find Europe's downward slide is deepening, as well as shockingly irresponsible lending practices that show we haven't departed from the nefarious behavior that caused the 2008 credit bust.

European Data Darkens

Despite the good vibes of the London Games, the larger countries in the EU are posting poor showings, economically speaking. Let's look at the largest four EU economies:

• France's central bank announced yesterday that France had re-entered recession – one that will be harder to grow out of given, Hollande's socialist plans to increase the tax rate (up to 75%!).
• Italy just announced an 8.2% drop in industrial production. Its year-over-year GDP