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

To: Horgad who wrote (91041)	1/30/2008 12:52:38 PM
From: sea_biscuit	Respond to of 110194

If your method of observation cannot tell the difference between the two, you might need a different method... IMHO No, he doesn't need a different method. He just needs to apply for a job at the BLS! :-))

To: Horgad who wrote (91041)	1/30/2008 1:25:18 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 110194

Inflation is there and deflation is there. It just depends which way you are looking. Maybe if you sum the two, you get some nice moderate inflation picture... It is like the statistician who said that if you have one hand in freezing water and the other hand in boiling water, you are, on the whole, experiencing comfort! :-) The more I hear from the deflationists, the more I tend to think they and the BLS folks are identical twins separated at birth.

To: Horgad who wrote (91041)	1/30/2008 1:42:31 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

The squeeze on J6P seems to be coming from all sides..the worst of flat wages,a deflationary spiral in housing and raging inflationary pressures in everything else he needs besides DRAM chips and the techo devices they come in..

To: Horgad who wrote (91041)	1/30/2008 2:19:38 PM
From: Sea Otter	Read Replies (1) \| Respond to of 110194

Markets Down -> Fed Cuts Half A Point. Pavlovian training complete!

To: Horgad who wrote (91041)	1/30/2008 3:27:20 PM
From: GST	Read Replies (2) \| Respond to of 110194

Your balance sheet is imploding and your cost of goods is soaring -- that is not deflation. An imploding balance sheet is not deflation -- it is the sound of your net worth going up in smoke. Housing is imploding. The dollar is imploding. The cost of goods is soaring. None of this is deflation. If your balance sheet implodes and your income is stagnant, then the rising cost of goods sold will eat you alive. That is not deflation -- and it has nothing to do with deflation. If you have a swelling balance sheet -- if it is getting bigger -- then you can use asset appreciation to offset inflationary pressures. That is why people look to assets like housing and the stock market to buffer them from inflation. That game will not work here -- at least not for housing. It might work for some asset classes like gold and possibly stocks. But for those who are house poor and who cannot buy gold or stocks, their fate is sealed -- they will be squeezed to a pulp by inflation.