What we’re reading, it ain’t a pretty picture…
- Housing data disasterous, durable orders equally so, as they seem to correlate very well with employment..
- Rosenberg (the one who noticed the correlation between durables and employment): this is a depression, not a recession
- Another clueless “economist” predicting inflation
As to the latter: money creation (through the QE program by the Fed) will only result in higher prices if the money created enters the economy (and even then there is a large buffer in excess capacity). This happens only if bank credit increases. Instead, it’s falling, as credit demand is very weak.