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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (73586)	1/14/2000 11:48:00 AM
From: Freedom Fighter	Read Replies (3) \| Respond to of 132070

BGR, I have no idea what the real inflation rate is but I am damn sure that the government doesn't either. A note: Starting in January subjective quality measurements will be added to the CPI for Audio and Video equipment. So again, we have changes that will lower the reported CPI right out of the gate. Now I realize that many of these ideas have merit, but I can make a long list of things that have merit in the other direction too. Only the former ever get implemented. At a minimum, all the changes that have come down in the last few years have changed the CPI for the better relative to our prior experience with the same index. I think all government stats should be viewed as highly suspicious at best and purposefully manipulated at worst. Wayne

To: BGR who wrote (73586)	1/14/2000 12:22:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

BGR, You haven't been watching CNBS lately, where they have been spouting the new pair of dimes for real rates. The current scam the new pair of dimers is trying is that real rates do not normally run 3% above inflation, but 4%. So current real rates are low. Heck, you have to have at least some theoretical reason for bloated stock prices. The bond traders are not even looking at consumer price inflation. They are looking at dollar supply inflation and sinking credit quality and eps growth of 3.4% and out of control asset inflation. I am the wrong one to tweak on the CPI number. I think we are in deflation with no pricing power which will eventually lead to much lower bond rates. Of course, the stock market has to crash first. Intel really did an obvious job of faking their eps this time, but I guess they figure that both the analysts and their investors or either too dumb, too naive or too co-opted to notice. Of course I am buying my last third of puts today. This stock is all hat with water in its oil wells. <g>