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 : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (75046)	2/21/2008 6:02:48 PM
From: Real Man	Respond to of 116555

We are headed that way. Iceland is still recovering. <g> forexblog.org

To: SouthFloridaGuy who wrote (75046)	2/21/2008 6:09:16 PM
From: roguedolphin	Respond to of 116555

<<<"So the Icelandic Krona has 8% real rates, yet prices are rising there. Please explain for me the efficacy of monetary policy.">>> I'll take a stab at it..... How about the world wide effects of the "carry trade" (you know....all that free borrowing via the carry trade).....on increasing the general price levels around the world. It only takes a few reckless monetary policy countries(USA...Japan?) to affect the whole world? Carry trade anyone?

To: SouthFloridaGuy who wrote (75046)	2/22/2008 4:59:50 AM
From: Real Man	Respond to of 116555

en.wikipedia.org Sum the current account surpluses of all of the World, and compare them to US current account deficit. There will be no deflation (in the US), cause this is not "global savings glut". It's US dollar, going downtown. Ben is helping, by making USD a carry trade funding currency.

To: SouthFloridaGuy who wrote (75046)	2/22/2008 7:42:48 AM
From: Mike Johnston	Read Replies (3) \| Respond to of 116555

Can't comment on Iceland, a country with a total population equal to the size of a couple of neighborhoods within Queens or Brooklyn. If rates where kept here at real +8% for the past 10 years, things would be dramatically different. There would be no stock market or real estate bubble, a starter house would still cost 100 grand and gas would still be at $1.25. Gold would not rise over 400. Instead, real rates were kept at 0-2 % for a long time. What do you think -5% rates will do ? You will find out.