Tuesday, May 11, 2010



BEIJING (AP) -- China's inflation accelerated in April, triggering a selloff in Chinese stocks Tuesday on fears of overheating and a possible credit clampdown by Beijing that might slow the country's economic recovery.

SSEC fell another 2% overnight, now IMHO in a full blown Bear MKT!

Slack in production and a HUGE labor pool, add to worries about deflation.

Consumers roll in GDP is now at record high of 70% (consumption) of GDP highest in the civilized world.

Duration of unemployment still stands at RECORD HIGHS. Wages still deflating, a trend in place since 2007.

Though we have growth vs contraction, a recovery of sorts, it will stand as little comfort for the 8 MILLION plus needing work.

Just as here, the onerous mistakes and debts of the players got foisted onto the public, now so in Europe too. Those responsable not held accountable.

Are we not surely headed for policies that will curb investor enthusiasm here in attempt to slow fiscal deficits? Including contraction of gov and higher taxes?

Surging US $ will not benefit multi national companies, as it collapsing $.

Housing prices still deflating. Bank earnings misrepresented and a BIG PART of surging SPX profit picture, that is all VERY suspect IMHO.

Worrisome is the fact that Corporate pricing power has now fallen to a 6 decade low! more signs of deflation pressures.

When you add in the "shadow" inventory of foreclosed and unsold homes you get a grim picture of a housing market, the MAIN DRIVER of our economy may be in a long term declining trend and take a decade to correct the previous excesses.

I think the notion of a V SHAPED recovery is ludicrous.

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