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

To: westpacific who wrote (30234)	4/8/2005 12:14:53 PM
From: John Vosilla	Read Replies (3) \| Respond to of 110194

Hyperinflation for coastal housing costs, gas, insurance, medical and education and yet feels like a depression as you can fly for only $49 or buy a computer or TV for a fraction of what it cost a few years ago. Still incredible deals on Houston real estate and much of flyover country too. Question is will the depressed stuff hyperinflate the next 10 years or will prices in the expensive stuff collapse? My simple mind thinks perhaps they meet in the middle somewhere <g>

To: westpacific who wrote (30234)	4/8/2005 11:21:40 PM
From: redfrecknj	Respond to of 110194

"All this talk of controlling inflation is pure BUNK, they have no plans to stop inflation, maybe they are trying to talk it down. Talk is all these guys do." You got that right. From the newly annointed Bernanke himself: In a speech on March 30, he explained that among the Fed's primary tools for successful monetary management is influencing long-term interest rates, which are set by the market. Indirectly, the central bank moves long-term rates by controlling short term rates via money supply. But in the end, talk is second to none when it comes to moving long rates, Bernanke concluded, reminding, "The most direct method is through talk." He went on to note, "The FOMC's post-meeting statement, the minutes released three weeks after the meeting, and speeches and congressional testimony by the Chairman and other Federal Reserve officials all provide information to the markets and the public about the near-term economic outlook, the risks to that outlook, and the appropriate course for monetary policy. With the aid of this information, financial market participants make estimates of the likely future path of short-term interest rates, which in turn helps them to price longer-term bonds. FOMC talk probably has the greatest influence on expectations of short-term rates a year or so into the future, as beyond that point the FOMC has very little, if any, advantage over market participants in forecasting the economy or even its own policy actions." This guy is certainly full of himself.