Posted on 11/30/2010 1:52:55 PM PST by Nachum
‘Tis the season to spend, spend, spend and it looks like consumers are doing just that. But, can this momentum spur a sustainable recovery and how long before people in this country are put back to work? (Snip) Nenner predicts a deflationary crisis that will cause the U.S. economy to “roll over” by mid-2011. He points to the Consumer Price Index, which is in “direct correlation” with Japan’s experience after their real estate bubble burst in 1989. “[The] economy is like a big boat that moves for 200 years and you cannot change it by putting some money in
(Excerpt) Read more at finance.yahoo.com ...
Here in Richmond, VA I see little evidence of any monetary hardship. Malls are packed every night and on weekends. Restaurants are hard to get a reservation in, new cars are everywhere and “Obama” stickers have been removed!
bmfl
ping
Stocks Fine for Now but Then Dow Will Crash to 5,000, Says Nenner
Are there government workers living in Richmond?
In SW Oregon it’s like the 1930s. Foreclosures and tax foreclosures up the wazoo, no jobs, no real estate being sold, stores closing left and right, people bicycling (I mean miles of country road) to the grocery store in the rain because they don’t have cars or can’t afford to maintain them, food banks all over the place, people in a nearby town sleeping in cars while traveling through, etc.
Monetary hardship is all-pervasive here.
Deflation? Mr. Nenner needs to go to a grocery store and buy his own groceries. Then he needs to do the same thing two weeks later so he can see prices are RISING!
I love these dire prophecies of disinflation.
Housing is returning to sanity.
Prices off all other goods are rising or the amount packaged is dropping in quantity.
Of course, the intellectual/economist class use asinine definitions of inflation ie Core (excluding food, housing and energy) inflation is down.
FHE probably acccount for at least half if not a lot more of our expenses.
Out here in the real world, housing is down, but energy, food are up.
Gary Schilling has been saying the same thing.
Malls in Pittsburgh seemed D-E-A-D over the Thanksgiving weekend. At least as compared to traffic in previous years.
Oh, I almost forgot! It's time for our 8 day Chanukah diet.
Are there government workers living in Richmond?
Yes. The cost of housing in Metro DC has gotten so ridiculously high, they’ve spread an hour south to Richmond, and all the way thru Maryland, almost to Pennsylvania.
“Are there government workers living in Richmond”?
...we are 90 miles from DC but that’s not the reason. There are a lot of “Capitol One” employees living in my area and they’re doing well. Just added 800 new jobs in finance. We have a lot of “future” commercial building going on that’s not getting filled. Some retail shops closing but not many.
Inflation in the US - my take is that poverty in the US is better than middle class in socialized countries.
He is not talking about now. He is talking about the future. I think that is one reason for the 600 bil. QE2. They are trying to stop a deflationary death spiral.
>> the intellectual/economist class use asinine definitions of inflation ie Core (excluding food, housing and energy) inflation is down.
Isn’t it hilarious that they fail to include in the inflation index the very things that people absolutely MUST purchase to live?
"Nenner believes that the current sun-spot activity is creating an electro-magnetic effect that is making humans always look on the bright side of things."
Yeah, sunspots influencing human behavior is exactly the sort of financial advice I was looking for.
Ding Ding Ding, we have the winning answer, and the answer is ugly, very ugly, it is Jimmy Carter Economics part II!
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