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In his latest missive, Albert Edwards, among other things, touches on two of the most critical drivers in the current economic climate: deflation and Treasury supply. His observations lead him to conclude nothing good about the follow-through for the current bear market, liquidity driven, short squeeze induced equity rally...
The media's desire to ignore this metric, which convincingly indicates that deflation is among us, despite the wanton destruction of US Dollars by Chairman Ben, is not surprising: the last thing US consumers need to know is that a dollar today may be worth less than a dollar tomorrow, and thus drive them to save even more, further crippling the Ponzi monster that the US economy has become.
Originally posted by yellowcard
He doesn't seem to know what he's talking about, he says "the last thing US consumers need to know is that a dollar today may be worth less than a dollar tomorrow, and thus drive them to save even more, further crippling the Ponzi monster that the US economy has become."
That does not happen, when people think the dollar (in reality, the assets that are dollar denominated) are going to be worth less in the future, then they save. They would not save money if they thought the dollar was going to be worthless. It's like saying someone would hold and buy more stock because they thought it was going to go down in value.
So...he doesn't really seem to have a grasp on...basic economic, so I'd take what he says with a grain of salt. Though I do think we are in for another whiff of deflation.
All told, High Frequency Trading Programs HFTPs control 70% of trading volume on the NYSE.
However, at this point, five stocks (yes only five) account for 40% of the trading volume on the market. Those five stocks: Citigroup, CIT Group, Fannie Mae, Freddie Mac, and AIG. Think about that, five stocks out of several thousand, are accounting for 40% of ALL trading.