Albert Edwards digs into Greedflation. I, too, think that this will break. I suspect it is some combination of monopsony and the triumph of corrupt trickle-down economic culture. But, recession cures all ills.
We had better hope so or Australians are a lot more fooked than Americans.
After working in finance for over 40 years I had felt there wasn’t much that could surprise me. Yet I find the unprecedented levels of corporate Greedflation in this economic cycle astonishing. The latest release of US whole economy profits data delivered another shock to my weakening confidence that the capitalist system is working as it should. Aside from the worrying implications of Greedflation for social cohesion, possibly the key issue for both bond and equity investors is how, when, or even if, these super-normal margins will deflate.
