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.
The world stopped with Europe.Including the US.The data coming out now is from the Europe scare period.
US companies are doing well.Lots of cash and good earnings.
I think when later data emerges the economy will appear much better.
Example see Toll Bros earnings today.High end homes are selling.First profit in 3 years this quarter.