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

To: ild who wrote (60399)	5/8/2006 12:37:38 AM
From: shades	Respond to of 110194

Latest Mosler Econ Analysis: mosler.org Posted by Warren Mosler (65.113.90.18) on 10:47:26 05/05/06 So far scenario intact: Weakening economy- financial burdens ratio putting a ceiling on consumer spending growth. Rising prices- core to continue to grow- compensation gains quickly flow through to core, owner equiv rent to rise all year, Saudi's and others acting as swing producers and will 'hold price' even if it means weaker sales rather than chase market prices down. Fed theory (not mine!) says it's up to the Fed to either 'monetize' the commodity price increase by being 'accomodative' or to act agressively to keep said prices from being 'monetized.' Fed likely feels it is 'falling behind the curve.' Weak $, rising gold, $75 crude add to Fed insecurity. They know Miller got the boot in 79 after only having hiked to just over 10% from 6.75% in 78 due to fears of hurting the economy. Note housing starts peaked in Jan 78.