the external inflation is worrisome. We could see an environment with flat/modest wage growth, while commodities and imported goods increase. Reports from Financial Times indicate pricing pressure in China is increasing. Product/commodity increases + wage increases means one source of cheap goods (and lower inflation in the US) goes bye-bye.
Complicating this is the fact liquidity is still high. As long as this nation has access to cheap capital, this up cycle could go on far longer than anyone expects, but like the housing market, extending the game only makes the hangover worse.
red, the gauge is useless when you already blew out the tires. I knew I shoulda never used retreads on my Porsche.
