Hello Ben...
Consumers Need to Deleverage
Consumers are tapped out in need of further deleveraging. Boomers are headed into retirement with insufficient savings. Small businesses are suffering from lack of demand, with rising input costs and lower prices received.
Forcing prices higher now (assuming the Fed could do such a thing) would hurt demand. Yet the Fed is hell bent on trying, first by destructive Quantitative Easing strategies, now with absurd inflation targeting ideas.
Michael "Mish" Shedlock
"Inflation Targeting Proposal an Exercise in Blazing Stupidity; Fed Fools Itself" 10/15/10
Showing posts with label Michael "Mish" Shedlock. Show all posts
Showing posts with label Michael "Mish" Shedlock. Show all posts
10/16/10
9/9/10
Quote of the Day: Mike "Mish" Shedlock
Quite clear the US economy is sliding back into recession, if not still in it...
The average consumer understands that, yet the average economist doesn't.
[At] this juncture, the debate as to whether the recession has actually ended or not is actually moot. The pertinent factor is: if there was a recovery, it now seems over.
Looking ahead, attitudes rule. With consumer spending weak and weakening, and now that the stimulus has run its course, the odds the 3rd and/or 4th GDP numbers will be negative are quite high, as are the odds of double digit unemployment numbers by the end of the year.
Michael Shedlock
65% Fear Double-Dip, 71% say US is Fundamentally Broken,
Net 32% Expect to Reduce Spending
Mish's Global Trend Analysis 09/09/10
The average consumer understands that, yet the average economist doesn't.
[At] this juncture, the debate as to whether the recession has actually ended or not is actually moot. The pertinent factor is: if there was a recovery, it now seems over.
Looking ahead, attitudes rule. With consumer spending weak and weakening, and now that the stimulus has run its course, the odds the 3rd and/or 4th GDP numbers will be negative are quite high, as are the odds of double digit unemployment numbers by the end of the year.
Michael Shedlock
65% Fear Double-Dip, 71% say US is Fundamentally Broken,
Net 32% Expect to Reduce Spending
Mish's Global Trend Analysis 09/09/10
8/12/10
Quote of the Day: Mish
On the lost momentum of the economy...
The key question, as always is "What Now?"
Geithner, Obama, Krugman all want more stimulus to keep the recovery going. However, as [Caroline] Baum explains, you can't keep something going, that was never going in the first place.
Michael "Mish" Shedlock
"Economist Cut Growth Estimates"
Mish's Global Economic Trend Analysis
The key question, as always is "What Now?"
Geithner, Obama, Krugman all want more stimulus to keep the recovery going. However, as [Caroline] Baum explains, you can't keep something going, that was never going in the first place.
Michael "Mish" Shedlock
"Economist Cut Growth Estimates"
Mish's Global Economic Trend Analysis
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