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Strategies & Market Trends : Waiting for the big Kahuna

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To: Trader X who wrote (16021)4/10/1998 1:28:00 PM
From: Bonnie Bear  Read Replies (1) of 94695
 
Trader X: re bonds: I agree. I don't understand why Greenspan and company claim there's no inflation, I'm forcing myself long (in microcaps and brokerages) because the inflation here in silly valley is terrifying to behold. The cost of everything has gone up so fast I'm afraid to keep cash. Higher wages to attract workers gets passed along to the consumer. The justification that inflation has gone down because electronics and computer costs have gone down doesn't help the average person who buys a computer every five years like a car. I can find no place in the U.S. where housing and utilities costs match the fed models- a young person on average salary cannot afford housing and utilities without going into debt.
Either bonds....but a banking crisis arising from bankruptcies could do it, too. So far the banks have deferred it by merging and hiding the losses in the merger costs. I think we have a long ways to go before the bank merger mania is done, the microcap banks have barely started.
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