Tuesday, January 3, 2012

Look at disposable income says ZH

He/she is talking about the flattening of income growth in the last five years, the line in the upper right corner.  That is going to go hand in hand with a reduction in M1 velocity, my measure of the retail transaction probability.
Here is a rule.  Lower the transaction costs at the retail end and we reset the entire economic bandwidth up a notch.

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