Good job Fed!

Quote from Vinny1:

Like some of the European countries and Canada, healthcare should be free for everyone; the government should pay for everyone's health insurance premiums.
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But that's debatable friend, because I care more about mine, and my families health, more so than the government. Therefore, I will go see my doctor instead.

This thread isn't about health coverage so I don't want to disrupt it. But, it was brought up in response to a comment I made on Inflation.
 
Quote from Dr.Greenback:

Also, as I said earlier, I haven't stopped buying food nor is there a shortage at the grocery. I can still afford fueling my car and, I have health coverage.
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So just because prices are rising does not mean there is inflation? But the definition of inflation is rising prices. So you make no sense.

The fact that you can afford these things does not mean there is no inflation. Affordability has nothing to do with inflation. The real problem with inflation is that it undermines people who actually (gasp) save money.
 
rising prices are the result of excess money creation...the housing bubble is the prime example...

why would a 3 bedroom dump in San Diego go for 1.5 million if there wasn't a lender with a bucket of cash to throw around....

until M3 flattens out or turns down (not likely under this Fed.), other asset prices will continue to bubble land just like housing did.........

wheat at $10 ???? oil at $100 ??? why not ???
 

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Guys...

instead of bitching about the fed, trade it. economic indicators are too strong for another rate cut in the Oct 31 meeting. The ZQ futures are pricing in a 25bp rate cut for that meeting (in Nov07 futs). Sell the ZQ Nov. (do it against long Oct if you want a hedge for unusual events).
 
what indicators?/

retail is flat to down, housing is a basket case, the consumer is swimming in red ink....

long rates are actually rising.....not due to credit demand but due to foreigners sensing that we are a risk....

I was in Home Depot today (Sat.) and the place was empty.....
 
Quote from gnome:

If they measured GDP the way it SHOULD be measured (number of widgets produced) instead of measuring the "$ Value of widgets produced", we could easily be in recession right now... but hardly anyone would know.

With the money-pump and denial of the true inflation rate , they can give the "appearance" of growth... but what's really being called growth is actually mostly inflation.

In spite of "head in the sand denial", the real inflation rate is much, MUCH higher than the "2%" bilge we are fed daily.
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good point.

Just put a 'dollar value' multiplier on GDP and you'll see we're probably more in the neighborhood of -5% GDP *real* growth this past yr.

GDP #s are always a nominal calculation. Its the inflation # (hence currency value) that everyone is always arguing about.
 
Quote from daddyeaux:

what indicators?/

retail is flat to down, housing is a basket case, the consumer is swimming in red ink....

long rates are actually rising.....not due to credit demand but due to foreigners sensing that we are a risk....

I was in Home Depot today (Sat.) and the place was empty.....
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yea but Dick Cheney bought euro bonds years ago ... he saw it coming. In fact, he made it come. Him and his rich friends can keep buying; they have plenty of $$$ to spend. That'll support at least 80% of the economy.

Never fear.
 
Quote from daddyeaux:

what indicators?/

retail is flat to down..........the consumer is swimming in red ink....
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So, despite all of the ugliness of the subprime mortgage shakeout -- with its accompanying rises in bankruptcies and foreclosures -- our latest ChangeWave survey results showed consumer spending has taken only a very slight hit so far.
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Retailers reported generally strong back-to-school sales for August, led by strong results from Wal-Mart, despite fears that the credit
crunch may have put a lock on consumers' wallets.
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August retail sales boosted by auto sales
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Best Buy Profits Rise 8.7 Percent, Beating Street Expectations
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Nike profit up 51%
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Biggest gain in consumer spending in two years
 
This Day of Reckoning can not be far away, and a sudden reversal of confidence by foreign investors could crash the US stock market for reasons very similar to what happened in 1987: equities riding too high on a cheap dollar.


However, the level of leverage in the capital markets is generally acknowledged to be very much higher than in 1987, beyond even what produced the Wall Street crash of 1929. So the fireworks, when they start, will truly light up the sky.
 
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