Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (37535)	9/19/2005 3:12:04 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

So are you short on oil<g>? And from the following blog: blog.mises.org "They are hyping oil investments to Mom and Pop investors on my local radio station right now, which is probably a sign of a bubble that's about to burst."

To: Knighty Tin who wrote (37535)	9/19/2005 3:14:57 PM
From: ild	Read Replies (1) \| Respond to of 116555

If it was your mistake it'd cost you some $373,000 right? It's not worth to lose your sleep over it. -g-

To: Knighty Tin who wrote (37535)	9/19/2005 6:15:30 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Ron Paul speaks out- lewrockwell.com

To: Knighty Tin who wrote (37535)	9/19/2005 6:21:47 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

Now, after Katrina, inflation expectations may have come unglued. Furthermore, consider this: Assuming the survey accurately represents inflation expectations, prior to Katrina, the real fed funds rate was 0.4%. After Katrina, the real rate is now negative 1.1%. In other words, policy just became a lot more accommodative, and the neutral point shifted up more than 100 bp! That is nothing short of a big leap, and whether it is temporary or not remains to be seen (gasoline prices have headed lower, but higher home heating costs are expected this winter). I think that the Fed will want to make sure this is a temporary inflation expectations reading, and that means higher rates. David Altig notes that the previous outlier in inflation expectations was a short-lived but sharp drop following 9/11. It is worth remembering that the Fed followed the attacks with aggressive rate cutting. Wouldn’t the appropriate strategy now be the opposite? economistsview.typepad.com