links for 2010-03-14

In all, the latest Fed Flow of Funds data suggest that, to the extent middle class Americans' finances are improving, it's because their liabilities are being reduced by default. The gains in asset values are being concentrated by those so-called households with the ways and means to own equities.

The economy is NOT recovering, they say, and the U.S. faces a depressing "eventuality" of either crushing deflation (Shedlock) or runaway inflation (Faber). The timing and type of this eventuality is uncertain, say the gurus, but they are certain it's too late for America to change course.