Zeev and thread:
I've slowly come around to the belief that
that there is indeed some inflation kicking
in, due to wage inflation due to tight labor
markets, and easy money, which is being made
in the markets and in real estate.
The fed measures inflation based on food and
energy items, there is no inflation there
however, but so what? The fed raises rates
to clamp down on easy money and cool stocks:
And this does several things--helps out oldsters
by lifting rates on their fixed incomes (tho
maybe I am wrongly assuming they are in
treasuries, maybe Grandma owns Dell Computer
ha ha), and takes the top of a market that
has them worried.
Plus, think of all the extra cap gains the
IRS can get if they can increase the churning,
get folks to sell and buy back on the dip,
perfect.
Finally, the gold bug thread has really lit
up (why I even have a gold stock now!)...is
that a sign? Maybe a contrary indicator, but
I think the gold bugs sound more rational
lately. |
