Hello, Deflation!

I’ve been in the deflationary and double dip camp for the past year, seeing the stock market reach unsustainable levels while unemployment has been staying around 10% (U3) and 17% (U6). The stock market started to agree in the end of April when we had the first of many daily plunges. 

The dollar reversed it’s decline on August 9 and then John Chambers @cisco declared rough times ahead on August 11. We’ve had red days ever since. Amazing how quickly a day makes.

[I listen in on the clowns at Fast Money for funsies and kicks. You have to read between the lines as their feeding tube goes right back to GE. Every time a guest argues for a bearish scenario Melissa Lee looks like she’s going to pass out. I guess that’s why @dylanratigan left; he got tired of being a Wall Street megafon.]

Looking at the similarities between the summer of 1987 and 2010 I’d say we’ll have a stock market crash this fall. Most likely before October. Ashes to ashes so to speak.