The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: russwinter who wrote (29321)	3/24/2005 5:18:39 PM
From: ild	Read Replies (1) of 110194

From today's CI: idorfman.com idorfman.com As you can see, never in the last 25 years has the year over year rate of change in PPI intermediate materials prices relative to the like measure of CPI been as high as we have experienced over the last few months. Again, this suggests that perhaps one of two things is driving this relationship. Either the CPI is wildly understated at the moment, which is a very good possibility, or the pressure on corporate profit margins broadly vis-à-vis input costs is becoming significantly meaningful, which is also a very good possibility. So which is it? Quite sheepishly, it’s probably a little bit of both. But in terms of forward Fed actions, it probably really doesn’t matter which explanation is correct. Either way, it sure appears that the Fed will need to address this dichotomy. And they appear to be publicly telling us that they will. Again, the ramifications for the credit cycle versus business cycle question loom large as we move forward.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next