SI
SI
discoversearch

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 : Bob Brinker, Moneytalk and Marketimer
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: octavian who wrote (1765)11/6/2007 5:31:31 PM
From: Kirk ©Read Replies (1) of 2121
 
Alan Greenspan repeating what I've said here since Brinker said the fed should not have raised rates above 4.0%.

money.cnn.com

"Greenspan also said the global economy can handle higher commodity prices through strong monetary policies by central banks and that he expected major increases in commodity demand from rapidly developing nations.

Central banks avoid worldwide inflation by maintaining monetary tightness at appropriate levels, he said.

"I'm concerned that we were moving from this 20- to 18-year disinflationary period and beginning to move in the other direction," Greenspan said.

Despite crude oil prices being above $90 a barrel, the global economy is still functioning, he said, indicating that the "underlying structure is doing well.

I wonder if you noticed that oil prices and gold have been soaring since the FOMC cut rates from 5.25%.

cut rates

Devalues dollar

price of oil goes up because it takes more dollars to buy

Higher commodity prices cause inflationary pressure that offsets some of the effects of lower rates stimulating the US economy.

Also, stimulate US economy and it stimulates demand for oil so it gives some positive feedback.

Cutting rates can be very dangerous... if done too fast and inflation expectation genie escapes from the bottle.

Good thing I bought a bunch of TIPS when their fixed part was high and rates were high.... Vanguard's inflation-Protect fund VIPSX was up 9.27% YTD as of yesterday....
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News