patrick.net

Go figure, even Krugman is suggesting a recession is possible:

Flashing Yellow
http://krugman.blogs.nytimes.com/2011/05/05/flashing-yellow/

A few readers have asked what I make of recent economic indicators. The answer is, nothing good.

It looks like a sputter, not a crash, but it’s definitely not good.

I wonder what his princeton buddy thinks of that!

Burn mother Burn,
How about those commodities?

My dinner plate is on fire.

I think it is great, as I said in another thread, Usama's death is a Global "Game Changer".
With that Lunatic running lose, the whole world can't gauge what how or when this whole "War on Terror" will really end. Even during the Housing boom, the money wasn't coming from productive GDP, but rather finding creative ways to leverage and hedge finances. Productive manufacturing and tangible hard assets, has been risky, in the psyche of the Investor. The uncertainty has been growing by the week. That is how we even get to $50 silver and every single commodity across the board at peak heights, all the while the Bernake can say with out purgory "It is not because of real inflation" and he was damn right. Not that him doing nothing made it right, but he's been right that it is not classic inflation. But you can call a five dollar nickle what ever you want, it still stings.

This wont be a "Housing Recovery" as some would wish, in fact, if this is the real deal it's the opposite for most houses. It's going to be back to "location, location, location" deciding what a house is worth. The national average will be between $80K to $120K.

But! Look what we get, we get so much more. Capitol that has been hoarded and waiting for such a day, is going to be coming out of the woodwork flooding every market and industry vertical imaginable.
More funds will available for small businesses, more available credit other than consumer credit, more angel investor capitol, private incentive to fund pipe dreams like high speed rail, to practical endeavors like vertical farming, battery research, new generation of solar cell materials and packaging.

This is a "Pull out" not a "Crash", but for those dumb enough to believe that this is a blip, it will be a Crash for those poor bastards.

I think we're headed back to fundamentals, trying to squeeze money out of those trying to just live and squeak by, has been hard and sometimes unproductive work, for investors and their capitol.
Hopefully we're back to the days of Money making money, as the current policy has been Money erasing money.