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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: yaetmo who wrote (23908)	8/20/2006 2:24:52 PM
From: Kirk ©	Read Replies (2) \| Respond to of 42834

Bob Starting to Spin on Inflation! Bob had a wonderful "duh moment" yesterday. A caller was asking about inflation and the price of oil and what component of CPI, the measure of inflation went down to offset higher oil prices. We might quibble and say higher priced oil doesn’t cause inflation because it is inflation! Bob said food and apparel and gave quite a good answer.... then when pushed he said we didn't get inflation because the Fed decided to not monetize the higher oil prices. I was on my bike and said "well, duh!" The Fed has said since it started to raise rates that it was seeing signs of inflation (mostly higher commodity and real estate prices caused the most worry) so they would continue to raise rates until these backed off. The big jump in oil was in the last two years...the same two years we've had an unprecidented 17 straight increases in the Fed Funds rate! duh Bob... if the Fed had NOT raised rates, then we would have had higher inflation due to higher oil prices. Thus they had to take a counter measure to offset the inflationary effect of higher oil prices. I can tell Bob probably understands this, but it will take several weeks of spinning to rephrase "what we've said all along on Moneytalk" so he no longer sounds so foolish on this whole issue.

To: yaetmo who wrote (23908)	8/20/2006 3:45:07 PM
From: fahrenheit451	Respond to of 42834

yaetmo >>Bull's bellow. Like Bob's opening comments on how great the market was this last week. Like the insinuation that Ben might have learned from Bob that oil is not inflationary. Insinuation? Here are his exact words: "Now that this decision has been made and now that chairman Bernanke has made it clear that he recognizes that higher oil prices can be a counter inflationary force something we have said on this program for many many moons. I am optimistic about Ben." I have seen nothing in print to indicate that Mr. Bernanke now feels that higher oil prices are counter inflationary. It looks to me like Brinker is going exactly what our queen accuses us bashers of going. He is stating his speculation as fact with nothing to back it up. Maybe it's time for Maria to have another chat with Ben to find out how he really feels about this issue.