There are two major schools of thought on what is coming next…and two renegade, home-schools too. There are those who believe we have a recovery…though weak…that will continue and eventually bring the economy back to health. This is the line of the Obama Administration and most mainstream economists.
[Read more...]Default, Deflation and Other Financial Curse Words
March 18, 2010 By Leave a Comment
In the US, producer prices fell in February, more than expected. Core inflation was barely positive. That is not just a US trend. In Europe, price increases have fallen to the lowest level in 11 years. Japan is experiencing the biggest price drops in many years.
This sounds like a D-word to us…disinflation, almost deflation.
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When Good Falling Prices Go Bad
The Dow stood up on its hind legs yesterday – up 208 points. Gold rose $1.
The dollar continues to fall.
What to make of it?
Well, it could be we're wrong about this market. There seems to be a lot of money eager to get into stocks. It's mostly fund managers and institutions. They can't risk missing out on a stock market rally – even a small one. If they fail to get in, what will they tell investors at the end of the quarter?
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