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The Standard & Poor is stuck at 1310 and markets seem to be shifting their attention to clues pointing to slower growth, such as the real estate cool-off. Higher commodity prices, combined with China's rate hike, will contribute to a changing sentiment that will respond to the next opportunity...

Excellent.

On one hand there are productivity improvements and on the other hand producers have difficulties passing higher costs to consumers. It seems to me that demand became much more elastic than before. For example, car sales seem to jump only during months when car dealers are offering sizable...

Good reasoning but replace "wage inflation" by "inflation". In Bernanke's view wage inflation is a phenomenon that happens when expectations are not anchored to a low rate of inflation.

I was there for a few months and what immediately comes to my mind as an affordable solution to your needs is Mount Pleasant. It's a nice place; fifteen minutes from the ocean, and fifteen minutes from downtown Charlestown; and you're also close to restaurants and shopping centers. Then, if...

Tony, Recognizing the confusion created by the G-7 statements as early as you did was the key to limiting losses. Thinking that their effect would dissipate quickly as I thought was an oversimplification because even if the statements didn't contain any new recommendation, they still have the...

That's right, Pabst and I had a good conversation. Let's keep it that way.

Thanks for the clarifications, on what you originally meant and on what happened to my reply. That was a in a separate post. I didn't mean to offend you and apologize for doing so because my intention was to give you a simple but genuine feedback on impressions left by what you say and how...

Pabst, Why was my reply to your post deleted? All I did is demonstrate with a chart from the Department of Energy that gasoline IS the major source of revenues for refineries, and did so without the kind of rudeness that you're so fond of. At the very least, if you don't like my answer and...

Higher bottoms, higher highs. Is that what you're looking for?

Excellent post! You're right on, on every single point.

Funny indeed.

The euphoria can't last very long while markets are still cautious because they still are.

Well, bonds are now joining the parade because the additional inflation-risk premium that was integrated into the yield curve this morning has completely dissipated.

They are happy that the Fed is acknowledging that housing and growth are slowing.

Markets still have a lot of information to sort out. The immediate reaction is 30 Yr +0'01 10 Yr +0'08  5 Yr +0'085 ...reflecting Bernanke's and the Beige Book's comments about housing and economic growth slowing down but with a sizable inflation-risk premium.

They dipped right after 3:00 when bonds closed. Does it mean that before that money was flowing from bonds to stocks?

The 10 Yr response was neutral while the 30 Yr's was a tiny winnie bit positive.

Yes, the G-7 commitments have added to uncertainties.

Another thing I made sure to mention is that while the manufacturing sector is still strong, we have at the other end of the economic circuit real estate cooling down. Janet yellen elaborates a lot on the various causes and effects to growth and inflation and from what I was able to understand...