Is it just me, or is the .50 drop BAD for the econ?

[dafong]

i thought inflation was caused from growing global demand of commodities. and if that's the case, what can the fed really do about inflation??? a weakening dollar and higher inflation, arent those the tradeoffs from globalization?

 

[kashirin]

Quote from dafong:

i thought inflation was caused from growing global demand of commodities. and if that's the case, what can the fed really do about inflation??? a weakening dollar and higher inflation, arent those the tradeoffs from globalization?

global demand is the result of weak dollar
As it's more affordable to evereyone except US.

So it's time to go through healthy recession, Stop being obsessed about consumer spending, support $ and curb demand for commodities

 

[nitro]

Quote from detective:

...
Inflation is a problem, but its only controlled if you believe in the CPI and hedonic pricing. ...

The right way to measure inflation from a trading perspective isn't CPI, it is the spread between TIPs and bonds. That gives you a realtime estimate.

That number is approxmiately 2.54%. That is .50% higher than the FEDs comfort zone.

nitro

 

[Tracy McGreedy]

Do you believe now?

Quote from Tracy McGreedy:

Bernanke is cutting because there is precedence during the Greenspan era. Looks like inflation is only a fear when the fed needs excuse to raise rates. When they need to bailout, suddenly there is no inflation. Greenspan wants us to believe that they could ease after 2001 because we were in a deflationary period. But that's all in hindsight. He is full of shit.

THE FED CONVENIENTLY MODIFIES THEIR STANCE ON INFLATION TO JUSTIFY THEIR BULLSHIT.