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Just Before The Great Recession, Mountains Of Unsold Goods Piled Up In Warehouses…And Now It Is Happening Again

When economic conditions initially begin to slow down, businesses continue to order goods like they normally would but those goods don’t sell as quickly as they previously did. 

As a result, inventory levels begin to rise, and that is precisely what is happening right now.  In fact, the U.S. inventory to sales ratio has risen sharply for five months in a row.

This is mirroring the pattern that we witnessed just prior to the financial crisis of 2008, and it is exactly what we would expect to see if a new recession was now beginning.  In recent weeks, I have been sharing number after number that indicates that a serious economic slowdown is upon us, and many believe that what is coming will eventually be even worse than what we experienced in 2008.

And even though I write about this stuff every day, I was stunned by how rapidly inventory levels have been rising recently.  The following numbers come from Peter Schiff’s website

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