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

To: shades who wrote (67025)	7/28/2006 4:16:30 PM
From: bond_bubble	Read Replies (3) \| Respond to of 110194

Anectodally, we are seeing cereal boxes weighing less (but same old price) [Quaker Oats and Honey, that I consume has been weighing 25% less for the last 6 months and it took me a while to understand why it was getting over so fast!!], peanut shortage (just now on CNBC), COrn shortage (as if these shortages are happening for the first time in 20 years) -- who knows Farmers are probably already quitting farming (PPI higher than CPI) as it is not profitable -- just blame the weather - whatever. I'm not sure if BLS considers less weight of cereal box for the same price as inflation or price neutral. I'm hoping to see more inflation in food and walmart [real goods]. That would mean the inflation seeped deep. Insurance cost (i.e service costs) etc are not a good predictor of future inflation expectations. I believe futures expectation (do they have futures market for services?) is available only for real goods. And Future inflation expectation should only be considered for real goods as they are also INELASTIC constrained by the ability to UNEARTH the goods. Service industries are generally very elastic. BTW, I just read that between 2000 (when companies like Exodus -- hosting websites 24/7, 100% availability, and providing high bandwidth, theft/flood proof etc -- was consuming 2 power plant outputs -- Exodus is no more) and 2006, power demand has gone up 25% and peak demand is up 40% in California. Most of this power has got to be consumed in new houses, malls and commercial buildings right (who is building Fabs or industry in CA?)?? I cant believe CA build up so much RE in 5 years!! No wonder this fixed cost/demand is NOT going to fall down even if there is a credit deflation.