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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (111394)	5/9/2010 1:15:43 PM
From: mishedlo	1 Recommendation Respond to of 116555

And yet the money market multiplier is well below 1 and there is no wage pressure, or consumer demand is low. It is a puzzlement. Not to me or my model It is important to factor in private credit. All Bernanke's printing and Obama's spending has done is counterbalance a historic plunge in credit Banks are not lending and businesses are not hiring. The stock market soared because the corporate bond market freed up and companies priced for bankruptcy could roll over debt obligations. Because marked to market valuations of debt went up, in spite of the credit contraction, I label 2009 starting in about February, as a period if inflation. One or two weeks is not enough to tell, but we easily could have slipped back into deflation just now. I expect the US to go in and out of periods of deflation for a few more years at least Mish

To: Little Joe who wrote (111394)	5/9/2010 1:17:03 PM
From: mishedlo	2 Recommendations Respond to of 116555

Sunday Funnies 2010-05-09: Nothing Lasts Forever; How did we get caught? globaleconomicanalysis.blogspot.com Mish

To: Little Joe who wrote (111394)	5/9/2010 1:22:03 PM
From: ggersh	Respond to of 116555

Money is only being swallowed by the banks

To: Little Joe who wrote (111394)	5/10/2010 5:33:01 AM
From: TobagoJack	2 Recommendations Read Replies (1) \| Respond to of 116555

<<And yet the money market multiplier is well below 1 and there is no wage pressure, or consumer demand is low. It is a puzzlement.>> all it means is that folks on this planet are getting diluted, at different rate, averaged over enormous numbers, but are unwilling / unable to borrow the dilution in oecd nations and saved elsewhere in emerging nations and inflation in the consuming west is kept in check by the manufacturing east even as raw material prices for all rise and production disappears from the west a compression of differential of living standard, as has been, obviously, for some time, like 2 decades manufactured goods inflation should make appearance at some point before standard of living of typical chinese n indian is equalized with that of the traditional oecd residents iow, when they are most vulnerable, during retirement