WRONG AS RAIN?

What to expect from first-quarter earnings
1:01 a.m. April 14, 2010 - By Josh Lipton
Gluskin Sheff's David Rosenberg points out that we did $95 at the peak of the last cycle when the unemployment rate was at 4.5%, private sector credit was expanding at a 16.2% annual rate, and nominal GDP was at a 4.9% year-over-year pace. So the prediction that, barely two years into the second weakest post-recession recovery in the past six decades we'll return to peak profit levels, Rosenberg wrote in a recent research note, "seems to be a tad outlandish."


from April 8th

"For the time being, strategic mortgage defaults and higher tax refunds are
keeping consumer spending afloat. Yes, employment conditions have improved
but not enough ostensibly to prevent wage contraction. However, when wages,
rents, property prices, credit and now the money supply are all contracting, it is
very difficult to paint an inflationary picture no matter what China is doing to
commodity prices."