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

To: GraceZ who wrote (56140)	3/17/2006 7:30:58 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

The Fed would never conduct monetary policy based on commodity or asset prices nor should they. Rising commodity prices are no more indicative of monetary inflation than falling technology prices are indicative of deflation. They are smart enough to know this. Ignoring asset prices is EXACTLY why they have to keep blowing bigger after bigger after bigger bubble to keep all the balls in the air. Then again, the problem is not rising asset prices but rising money supply, isn't it? In short we have an insane monetary policy that can only deal with the aftermath of stupidity. The problem is the expansion of money supply that creates asset bubbles. So in that sense you are correct. As for Rising commodity prices are no more indicative of monetary inflation than falling technology prices are indicative of deflation. They are smart enough to know this...... Then why do the idiots keep on spouting off about oil prices, not just in the US but in the EU and and the UK and NZ and damn near everywhere else too? Are you proposing they are a bunch of liars? Or are you proposing they are stupid? Look you seem to agree that they know what you and I know but their policy PROVES otherwise. I think Bernanke is very very bright. I also think he can not find his ass with both hands. In other words he is a dangerous SOB in the wrong place at the wrong time, primarily for political reasons. Mish