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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (4459)	1/6/2004 9:04:53 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 110194

he would pass the lie detector test as long as he kept his mind focused on the YoY price change of 156,000 WalMart SKUs. that's a very broad basket of goods showing deflation. it is not a good sign for inflationists that end prices are deflationary, and that real income growth is nonexistent for the longest period ever in a recovery. rising prices without rising incomes will eventually be hit by falling demand. and the WalMart SKUs are already falling, so demand might crash. this is on Greenspan's mind w/r/t the housing bubble. the places where inflation undeniably exists--housing, commodities, could see a rapid reversal. if this were to happen, the WMT SKUs could be considered a leading indicator of deflation. of course, the obverse could be true as well.