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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (6578)1/30/2004 8:54:02 PM
From: TobagoJack  Read Replies (1) | Respond to of 110194
 
<<Exactly how does an interest rate hike help?>>
... it energizes the bulls into motion :0)



To: mishedlo who wrote (6578)1/30/2004 9:21:45 PM
From: russwinter  Respond to of 110194
 
Really, what's so tough to understand about this? All these posts (of this nature) have one thing in common: they illustrate a series of highly inflationary events. But, if it would make you happier, I think I'll start doing my own random product checks down at Wal Mart to boot. Who would you trust on this ? Me or Bernanke? How much inflation do you think they should just ignore?

Secondly these posts present the huge economic misallocations and distortions (including bottlenecks and supply shortages) that crop up from bubble blowing and hyper-finance based economic policies. Higher interest rates prices credit correctly, and forces capital to be allocated better (as opposed to just speculatively). Thirdly, you don't just fuel even more inflation, with still more prolonged easy money. Not to worry though, misheldo, the evidence of what I've been posting here lately, will be evident in the rear view mirror, horse already out of the barn inflation stats soon enough. Keep your eye on the inflation numbers over the next couple months. That's almost the only reason I'm still short the Euro $ and stock market. People will be scratching their heads, saying "wha happened?", and "Who'd a thunk?".