Msrpaul

Wednesday Outlook: Commodities, Emerging Markets

As I say, they can only "gig" the news so long (sucking in the small investor). What everyone seems to so severely miss is that without real income growth- which we haven't had for years as we've been fueling our demand for things with credit growth-there can be no real GDB growth. Greasing the financial wheels prevents meltdown, but the underlying fundamentals of weakening American skills creating a more service based economy (especially on the low end) are not a driver for wealth.

In our incredible desire over the years to avoid normal and healthy corrections, we have built an artificial economy based on assetts, not income. Housing will regress to the mean, as supply and demand will ultimately trump any tricks the Fed can attempt.

Now commodities inflation will enter, and will exist for years.

Great charts David, I look for them every day.