A little change in core PPI says the inflation part of the stagflation is under control but inverse direction of stocks and bonds manifests start of a massive recession
Mike Moran
Oct. 17, 2006

The core PPI measures due at 8.30 AM from Bureau of Labor statistics, U.S. Department of Labor shows the inflation part of the stagflation is under control. Market brokers are feeling the sighs of relief. But a quantatative model following the direction of smart money movement is telling a little different story.

All on a sudden for no apparent reasons, the bond market and the stock market are moving in opposite direction while smart money flow is out from both into cash and money morkets. That normally happens at the start of a recession.

The inverse trend of bonds and stocks are calling for caution in smart investment minds.

The analytic model is calling for a serious crack in stock market. The actual may not come for a few months till the ‘elevators’ are fully loaded with common people and their investments.

The recession actually has already started. Those who try to get decent jobs know what inderemployment really means. It is easy to find a humbergur flipping job but when you ytry to match your qualification and expertise with a the job you can get, the world falls apart.

The recession is driven by underemployment and not outright unemployment. This new kind of recession can be deeper than ever imgained. Interestingly no one is measuring it. No corrective actions are taken. People are blaming themselves for their fortune of not finding the right job.

Lack of measures to correct the underemployment driven recession is dragging the economy down further. If slight inflation is suddenly changed into deflation (as happened in Japan in the last deade), the economy can be depressed.

A little change in core PPI says the inflation part of the stagflation is under control but inverse direction of stocks and bonds manifests start of a massive recession
Mike Moran
Lack of measures to correct the underemployment driven recession is dragging the economy down further. If slight inflation is suddenly changed into deflation (as happened in Japan in the last deade), the economy can be depressed.
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