“People’s incomes haven’t been going up, but their costs have,” Mr. Sprott said. “It’s palpable what’s happening, and it’s not good.”
His favourite “negative” indicators include U.S. bank failures (which increase every week) and over-leverage in the banking system (a huge problem in Europe). But the lesson of the past few weeks is that any investor can find a negative indicator to suit his or her taste right now. They all boiled over into a panic on Thursday, and if all those Harvard MBA recruits want to keep their jobs, that panic had better recede pretty soon.
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