IYR is breaking down through the 50 EMA today. Maybe a revisit of 22 or worse in the future. Think it’s time for the move to short?

http://zerohedge.blogspot.com/2009/06/green-street-advisors-on-cre-nothing-is.html

Yeah, Bruce, world trade is collapsing. Chinese and Asia depend on exporting to us and that is going away. Saw something in the past couple of weeks that the Japanese might be willing to further destroy their own currency to encourage exports.

Oh, BTW, new Chinese regulation requires local governments to spend stimulus on Chinese goods unless the item required is not available in China. I’m sure it was for domestic political reasons, but they forget there is an internet. So much for Chinese grousing about “Buy America.” And the beginning of the trade wars.

Two interesting columns I was notified of by google:

“May Mac sales better than expected, iPod worse”
http://apple20.blogs.fortune.cnn.com/2009/06/15/may-mac-sales-better-than-expected-ipod-worse/
In sum, it says sales were crappy, but beat expectations. But, Piper Jaffray is certain things will pick up in June, so it’s bullish.

And this:

http://www.moneyweek.com/news-and-charts/economics/the-threat-of-deflation-hasnt-gone-away-14908.aspx

Explains how keeping up earnings by cutting jobs and costs is just robbing future earnings because there will not be anyone to buy the products. I had trying telling a bullish friend this two years ago to no avail.

I think everyone knows inside that the private and public debt is unsustainable but the consequences are painful. Certainly too painful for MSM discussion or for people to admit in conversation. Unless you are a Bear, of course.

ben

The reflation has been overstated for now, although there is some inflation coming down the line. The death of Treasuries was clearly exaggerated. Green shooty talk will be less evident now that banks are recapitalized.

It just makes me crazy to see the lack of acknowledgment and/or understanding of the root problems here. And that just keeps the general public in the dark and misled about what the problems are and what the risks are. Nothing new under the sun, of course. But endlessly frustrating to watch/observe.

Good observation. This is why the Fed policy will ultimately fail. They are only going after symptoms, not the problem itself, which as you say, is debt.

Also, Fed Ex didn’t look very green shooty this morning and the CPI, like the PPI yesterday spelled deflation.