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

To: TimbaBear who wrote (71770)	10/12/2006 2:20:40 PM
From: mishedlo	Read Replies (5) \| Respond to of 110194

Timba - If someone says day in and day out that inflation is soaring (based on prices) then I should have the right to ask by what measure. It's a simple as that. There is nothing disingenuous about it. So when judging eye color, please look in a mirror. As for THE only method, well aren't you the pot calling the kettle black? Some here think prices are THE only method and you seem to going well out of your way to defend that point of view. As for me, I simply want to see the measure because I am tired of statements suggesting we are in a state of hyperinflation or anywhere close to it. It was a nice rant though. congratulations . should get you a lot of recs Mish

To: TimbaBear who wrote (71770)	10/12/2006 3:43:19 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

'Why can't you just acknowledge that there exists multiple approaches each with interesting arguments to their credit? ' Because the neocons attempt to control the game here too. Only instead of being labeled a liberal you are being labeled a hyperinflationist for not staying in the fold. Meanwhile the DOW at all time highs, we have our RE bust, liquidity runs as free as ever and our banking system remains as solvent as ever in a very low interest rate environment. Probably not the way some like it but it seems to be the cards dealt for now.. On your other post I always thought higher interest rates = higher dollar as an offset to higher inflation = lower dollar. The main reason I feel higher interest reduce values is multiples to cash flow versus the risk free rate need serious adjustment that can only be made up by higher margins and strong top line growth as an offset. Take 4.7% which equates to 21.3 risk free multiple versus at 7% the risk free multiple drops to 14.3..