Improving March Leading Indicators confuses Fed again in lowering rates in the middle of deflation and deep recession
Alan Hershey
Apr. 18, 2007

The GDP is projected to rise around 3%, but analysts projecting the same know the recession in Main Street in already there. The deflation and distress is widespread and far-reaching than any of the Wall Street Gurus will agree to “agree officially”.

The Fed is confused again in looking at the improving March Leading Indicators. They feel relieved that the recession is not there and may be soft landing is in the periscope. The February Leading Indicators was awful – down 0.5%. It is a marked improvement in March. Is this the start of the end of the recession talk?

Collapsing housing market, lack of innovation and control by ‘old inherited unproductive money’ triggers the recession. The deflation and recession is stealth. It is even confusing the Fed who can lower rates and takes the deflationary recession out.

Occasional good data like this helps keep the rates where it is. In the long run a ‘stay put’ policy by the Fed can be devastating.

The true nature of deflation and underemployment is manifested in small business confidence and lack of enthusiasm
Fred Day
The true nature of deflation and underemployment is manifested in small business confidence and lack of enthusiasm. The effect has started influencing the consumer confidence.
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Rising Philadelphia Fed data for April signal start of cyclical manufacturing upturn within a large secular deflationary downturn
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After some more ‘breathing data’, the manufacturing GDP will register clear negative growth. The effect will spill over into Asia and Europe which will eventually register even larger negative growth.
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Improving March Leading Indicators confuses Fed again in lowering rates in the middle of deflation and deep recession
Alan Hershey
The deflation and recession is stealth. It is even confusing the Fed who can lower rates and takes the deflationary recession out.
READ MORE>>

Falling March Housing Starts is a major concern – real estate far weaker than many can even imagine
Marla Guthrie
After the real crash between now and 2012, the laws will be enacted when people will be asked to put down at least 30% before they can get a mortgage.
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