The lack of job growth spreads beyond homebuilders – deflation in full control as mortgage defaults skyrocket
Peter Oberois
May 4, 2007

The artificial liquidity created in the last six years has hidden the stealth deflation within the economy. The employment data finally confirms that the stagflation that started in 1981 has now slowly turned into a deflation. No one can feel the deflation because of the Government created artificial liquidity through budget deficits and trade deficits. The liquidity also is enhanced by the Asian Central Banks that buy Treasuries as their foreign exchange reserves balloon.

The interesting thing about today’s report is in the fact that residential and nonresidential real estate construction employment has fallen. In addition the loss of jobs and lack of job growth has spread into areas other than real estate.

Manufacturing, auto, and real estate are leading this massive economic downturn. The inflation is benign in spite of the massive artificial liquidity because of the deflation. The deflation is clear when you calculate inflation adjusted real purchasing power of families today compared to 1980.

The lack of job growth spreads beyond homebuilders – deflation in full control as mortgage defaults skyrocket
Peter Oberois
The artificial liquidity created in the last six years has hidden the stealth deflation within the economy. The employment data finally confirms that the stagflation that started in 1981 has now slowly turned into a deflation.
READ MORE>>

The price war between Microsoft and Google on Yahoo take over – Yahoo may refuse both the offers
Karen Zuba
Microsoft’s interest in Yahoo is no new news. They wanted to acquire Yahoo one year back. Yahoo asked for price that was beyond Microsoft. Now Google will match and go over in Yahoo pricing.
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Employment growth shows economy in deep trouble as stagflation changes to deflation and economic meltdown – time for crash in Dow?
Fred Day
The economy is losing momentum in spite of some gain in the service side of the economy. The manufacturing is suffering. The real estate is in deep slump. The ISM services number that used in 60s is now in 50s.
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Real Estate market in deep trouble – lawsuits challenge new home construction – can market bottom be now?
Peter Oberois
The real estate market is ready to bounce back as money flows into it from the stock market. It may not sustain beyond eighteen months but you never know.
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Dow industrials shrugged off GM's big profit decline but fundamentals points to massive crash in coming months
Sam Adelton
How far can Dow go? It depends how much liauidity in the system will pour into the stock market. Eventually the stock market will perform based on the economy and the corporate profit perfomance.
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Credit card holders pay Rupees 6,000 cr 'extra'
Media Release
The banks have already extracted around Rs 6,000 crore in the name of late fee, cash advance fee, billed finance fee, over-limit fee, cash withdrawal fee, cheque pick up fee and service taxes on all these fees
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Dow at new highs as deal news, factory data boost sentiment
Media Release
Dow crosses 13,200, closing at 13,211 after touching 13,256 during session.
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