re: Inflation Watch -- Last Week of Feb-2013 Edition

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How much improvement is too much though?

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I don't know if Ben Bernanke himself could answer that loaded question

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And how can we make sense of this allegedly tight credit if levels of consumer credit are at record levels and currently rising at an alarming pace?

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Maybe the consumer credit levels are being boosted by revolving credit and non removing credit? I would have to look into it but that's my hunch.

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Stocks are back their old highs, and home prices this summer might get within 5% of their summer 2008 levels (at least in nominal terms). Given the almost total lack of economic and employment growth since then, that's somewhat shocking.

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Doc, this says it all to me. We are in a jobless recovery according to the U-6 (very modest job gains). The Fed has sucked all the yield out of bonds, savings, CDs etc. and has forced whatever investors there still are into the stock market. It's all a mirage.

Additionally, the net jobs lost since January 2009 is 2.8 Million amongst ages 26-54. Over 40% of college grads are in jobs that don't require a college degree and ages 55-Older wont get out the job market. The millenials are drifting into downward mobility because the are saddled with student loan debt, have a shity jobs (if they even have one) and are poised to be the largest generation to ever live at home with their parents.

Sorry, I got off topic a little there but I wanted to stress the job market and housing correlation as I see it.