you've been studying textbooks for too long.
for one thing, you say: "(combined with a declining value of the dollar in real terms) creates a declining P" what?? how does a declining value in real dollars decrease P in nominal terms? you're not even translating the real world into your...
too much "smart" money in here for me... out of my league here... i'm not good enough to even read this thread
idiots
But if you truly want to short interest rates, you might buy long term puts on:
zb (futures)
ief (eft)
tlt (eft)
rrpix (short bonds mutual fund, but expensive...
just from personal experience...
i have an income in the top 10-15% of the country but can't afford a MEDIAN priced home without sending half my net to the bank or using an infinite year/interest-only loan.
meanwhile some examples of my friends in the past 3-4 months:
- bought $340k home...
a synopsis of the optimistic case:
http://www.321gold.com/editorials/mauldin/mauldin111205.html
http://www.321gold.com/editorials/mauldin/mauldin112605.html
massive bear here. i think this whole place is going down the shitter. (of course i also think we will overcome that after 20 years or so).
but.
in case i'm wrong, i do read the optimistic "this time it's different" stuff too...
for those who want the positive side of things...
I'm curious on ideas on how the fed might inflate the housing market further (or at least keep it stable). From the fundamentals, I don't see how the market has anywhere to go but down. But keeping it up is critical.
If they lower rates to 1%, with housing prices already beyond the...
20% inflation is "ok"?
so let's say your employee is paid 30k/year and comes to you at the end of the year and says he can only buy 24k worth of stuff. he wants a raise.
how much do you give him? do you take his word for it that it's 20%? maybe we should use the cpi? but the cpi only...
interest rates are rising to control [perceived] inflation at the currency exchange level.
higher interest rates = more demand for dollars = stable exchange rate = no perceived inflation
inflation is inflation
low cpi = low [perceived] inflation
stable exchange rates = low [perceived]...
<quote>The Fed fights inflation by raising the cost of borrowing money, slowing economic activity.
"The Fed is quite concerned about letting the inflation genie out of the bottle," Behravesh said. He predicted that core inflation, which has been running at an annual rate of 2.1 percent so far...
fiat money only exists to the extent the public has faith in its value.
although we've had massive inflation [of the money supply] for years, this hasn't really shown up as rising consumer prices. (except the stock market, bond market and real estate market)
interesting to note Japan...
long EUR/USD? um, no. i wouldn't long or short that. gambling.
And yes, I'd agree the president of Iran is an idiot. However that has nothing to do with whether or not Iran will trade in Euros.
This is so insane I don't know what to say... do i really need to break this down for you...
to paraphrase: "Iran will likely continue to accept dollars because the new president is an idiot."
??? That's your argument?
Babak: it doesn't matter anyhow because anyone who thinks the currency they are paid in is relevant is a financial illiterate.
??? I guess I'm illiterate...
"Energy is a killer, but if you don't use it, you're not seeing a whole lot of inflation," said Joel Naroff, chief economist at Naroff Economic Advisors, a consulting firm in Holland, Pa.
My expenses in order of how much I spend each month:
1. taxes
2. food and entertainment
3. housing
4. insurance
5. gas
6. goods at Walmart (<$100/month)
I have a computer, a dvd player, pots and pans, towels, etc. You buy those once.
While I agree goods are deflating, the bigger...