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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (65475)5/11/2007 7:04:40 PM
From: yard_man  Read Replies (2) of 116555
 
It's been so easy to fade this -- every time we've had a pullback. Today we had the China trade surplus that caused an orgy of buying in this:

finance.yahoo.com

Let me tell you what I think. This month's fall won't be remembered for the fall in retail sales that we see in the next month. You heard it from the peanut gallery!!

>>With any sustained pullback in consumer spending, the massive overcapacity in retail stores will become rudely apparent. Perhaps this is finally it or perhaps not but eventually those stores that were busy hiring because of expansion are going to have to start laying people off. All the pieces are in place for one heck of a nasty consumer led recession. Unfortunately few are prepared for it.
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