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

To: John Vosilla who wrote (47144)	12/13/2005 3:17:54 AM
From: Taikun	Read Replies (1) \| Respond to of 110194

<Larry Kudlow, most fund managers paraded on CNBC and the fed have bought into it> The main reason Krudlow doesn't want to count housing inflation is that he thinks it is 'good' wealth creation. Property on the far side of the Moon anyone?

To: John Vosilla who wrote (47144)	12/13/2005 4:04:39 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Alternative Underwriting globaleconomicanalysis.blogspot.com Mish

To: John Vosilla who wrote (47144)	12/13/2005 4:23:08 AM
From: mishedlo	Read Replies (4) \| Respond to of 110194

But Mish, Larry Kudlow, most fund managers paraded on CNBC and the fed have bought into it. I trust you and me before that cast of characters Please do not misrepresent my position. The FED should target money supply. Period end of story. The FED should not target, assets, oil, Ipods, houses or any damn thing else. Peak oil is peak oil and it is blatantly stupid to target oil prices. I have said many times that the CPI is understated. But using a blunt instrument (interest rates) to target oil prices is nuts. Productivity improvements masked the effects of inflation. Rampant increases in money fueled a stock market boom instead of going into prices. Falling oil prices in the late 1990's helped. It made it look like there was little inflation. The above is why paying attention to prices is wrong. The problem is not the CPI, the PPI, or any damn thing else. The problem is the FED let money supply get away from them. Now if that is what Kudlow or the CNBC clowns is saying I will eat my fuckin hat. The FED should target money supply and that would be that. In fact the FED should be abolished and the market could set the freaking rates. But if you must have a FED it should not monetize govt spending. I will say this, attempting to control the price of oil via interest rates is just plain fucking stupid and it should be obvious why. Greenspan thought there was no inflation when oil prices were falling. He was wrong. The solution is not to target prices but instead target money supply. If peak oil pushes up the price of oil so what? Rising or falling oil prices has nothing to do with inflation. Inflation is caused by printing and that money may go into stocks, houses, oil, or gold. Because of peak oil, oil prices might stay high if the fed jacked up rates 200 basis points tomorrow. If you are out of a commodity it is going to demand a high price regardless of what rates are up till the point you cause a depression. Now if you disagree with what I just said. Fire away, but throwing me in with Kudlow is total bullshit. Mish

To: John Vosilla who wrote (47144)	12/13/2005 5:30:24 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 110194

Do not forget soaring insurance rates. With Florida home insurance costs expected to surge again in 2006 the PALM BEACH POST carried an article yesterday arguing that if the trend continues the cost of living here may become too high for some retirees and working families. This, of course, has major implications for the housing market.

To: John Vosilla who wrote (47144)	12/13/2005 12:36:24 PM
From: mishedlo	Respond to of 110194

Dude, you need to read more carefully or stop responding to people at 4am in the morning! He wasn't throwing you in with Kudlow & Company, he was agreeing with you and saying that Kudlow et al was what guys like you and him were up against. But nice rant anyway! Good god! How can I possibly apologize enough? I misread (at 4:00AM or whenever it was), what you were saying. Man I thought you were lumping me in with Kudlow! Sincere apologies offered. I hope like Grace, you appreciated my rant. If nothing else, my position should at least be more clear. Mish