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

To: Mike Johnston who wrote (66480)	7/20/2006 9:41:31 AM
From: Jim McMannis	Respond to of 110194

I'll give that a second and a third. The root of inflation is the printing of money. And for housing, a 'fortuitous" series of events made it too easy for the money to flow there. Ecessive tax breaks, Low interest rates, toxic loans etc.. Now Bernanke is left with trying to perpetuate this pig? Should he do the right thing and cool it, he will have his head chopped by the porkers that helped create the bubble in the first place. I was looking at a small house a friend used to own in Lake Worth, FL. He sold it in 1989 for $59k. In 1997 Zillow still had it valued at $60k. It peaked at $297k in March '06. Now they have it at $260k. Still 4 times what it was in '97.

To: Mike Johnston who wrote (66480)	7/20/2006 9:57:51 AM
From: yard_man	Respond to of 110194

To what extent easy money caused the rise in oil prices is debatable -- but the rise does feedback and will have a slowing effect, albeit with a lag. I think we are already starting to see that with the consumer. From an academic POV, I don't think it is stupid for Fed officials to take this into account