The Big Picture Breaks Down PPI

The inimitable Barry Ritholtz, once again, sheds true light on the false underlying assumptions that many “experts” base their realities upon, this time regarding yesterday’s “benign” PPI number.

Many people have commented on the demise of the newspaper industry but I think one of the factors seldom mentioned is that media consumers now have better alternatives. I don’t mean faster or more updated but better. If you read the mainstream newspapers, you will get a short blurb about how PPI was relatively flat — this tells you absolutely nothing and is actually misinforming. I pity the fool who comes to the conclusion that inflation isn’t a big problem.

If you want to know to know what’s really going on, you have to hit the slightly subversive sites, the blogs, etc. In all my experience (and the whole point of this blog), the slightly subversive element has always been the leading edge of soon-to-be mainstream. It doesn’t matter if we’re talking about politics, music, even the markets.

You could have heard about the housing bubble and the credit crisis months in advance by sidestepping the MSM and going straight to the (virtual) “street.” Of course, you have to be able to think for yourself and recognize the truth when you see it. Maybe that’s the hard part.

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