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

To: mishedlo who wrote (69413)	9/6/2006 2:19:04 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

price of homes dropping like a rock.> Overstated, evidence is that prices are dropping more than the median prices being reported, perhaps mid single digits instead of flat. But that's after 40-60% gains in the last several years, during which you've been screaming for lower interest rates. <Are we now down to tracking the price of OJ> Hardly just OJ, cereal, equipment for CAT, on and on, ad nuesuem. <prices at restaurants> I don't make it to rural Michigan much, so am missing this particular "deflation". I will stay alert for it I promise, but no where on my radar screen.

To: mishedlo who wrote (69413)	9/6/2006 2:37:12 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

Are we now down to tracking the price of OJ yeah, why track the national price of OJ. so much better to track the daily specials at the Danville Bennigan's--the nation's true inflation barometer. in any case, i agree with you: if prices are going up, it's deflationary, because that means less demand. and if prices are going down, that's deflationary, because prices are lower. when housing prices went up, that was not inflationary because you said it wasn't. and now that prices are going down, it's deflationary because you say it is. when commodity prices rose, it wasn't inflationary because you said it wasn't. when the CRB falls, it's deflationary because you say it is. this type of analysis has enabled deflationists to correctly predict when the Fed will stop raising rates, give or take five hundred basis points.