Deflation, Housing and Returning to Prosperity

Is the Fed's liquidity attack winning the war on deflation? This morning's update on wholesale prices, new housing starts and new building permits offers a few reasons for answering with a tenuous "yes." Maybe. Even if that's true, we're a long way from a "recovery" that's worthy of the name. But perhaps the blood will run a little slower; perhaps it'll stop flowing altogether. Stranger things have happened.