Funny Money, Wall Street is having a difficult time…

in a sense Wall Street is lost, they have been playing in artificial markets for so long that they don’t know what a real market looks like. The numbers that are coming out of the economy have everybody on Wall Street backwards. Here is what Bloomberg said yesterday morning:

Wall Street is loudly warning that next year’s outlook for the US economy and stocks is grim. Goldman Sachs CEO David Solomon cautioned that the economy faces “bumpy times ahead” and JPMorgan CEO Jamie Dimon expressed a grimmer view that this would be a “mild to hard recession.” Meanwhile, Morgan Stanley Wealth Management’s Lisa Shalett said that corporations are facing a “rude awakening” on earnings. Layoffs are also adding to the gloom, with Morgan Stanley announcing it will reduce its global workforce by about 1,600 ahead of a potential US recession, while Bank of America said it was slowing hiring. “

Tomorrow’s PPI…

Later today, maybe around 10:00 AM CST, we will provide some insights into tomorrow’s PPI, a number which has the potential of being the last in a while showing increases year on year.

Here may be a part of the story, tomorrow’s PPI number while still showing a year over year increase, will with a 70 % correlation to the CRB index, follow the trend to lower core inflation.

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