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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 244.41+0.6%Nov 7 9:30 AM EST

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To: fedhead who wrote (91038)1/14/2000 5:09:00 PM
From: KeepItSimple  Read Replies (1) of 164684
 
>Why is the yield up to 6.69 if the CPI and PPI numbers
were benign ?

Because the bond market consists mainly of sophisticated traders, and they don't believe the gov. statistics at all.

All you need to know about the worthlessness of the gov figures is one example:

The housing price inflation component only measures the cost of RENTING a house in a given collection of demographic areas, it does not measure the actual cost of buying a house.

The cost of buying a house increased at a rate of 30% annualized over the last 3 months. But there isnt an official gov statistic that keeps track of that. That statistic is provided by the private sector.

Then throw out the price of energy and food, and you've got an inflation index that measures ridiculous things like tobacco and the cost of 1 yard of processed rayon fabric.

Nobody with a brain thinks there is no inflation. Only people long stocks, or looking to sell stock to the public. IE- all of wall street.
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