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: westpacific who wrote (76085)	12/19/2006 12:56:54 PM
From: Les H	Read Replies (1) \| Respond to of 110194

Month-to-month volatility in the PPI shows that they're losing control. This will eventually impact on the ability of businesses to make longer-range decisions.

To: westpacific who wrote (76085)	12/19/2006 3:12:17 PM
From: Mike Johnston	Respond to of 110194

History shows that stocks rise during devaluations of currency. In this case the US market doesn't even have to deal with short rates of 25-50% like in Brazil in 1999. On one hand it is amazing how sticky stocks are on the downside considering the state of the economy, on the other hand one must understand that hyperinflation will send stocks to the moon. If the Fed will stand on the bid in the bond market i cannot picture a scenario when stocks would go down, since stocks are only hurt by inflation to the extent that high inflation normally sends bond yields higher.