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

To: Giordano Bruno who wrote (93615)	4/16/2008 9:41:46 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 110194

The Boss endorses Obama: news.yahoo.com

To: Giordano Bruno who wrote (93615)	4/16/2008 9:45:24 PM
From: Real Man	Read Replies (1) \| Respond to of 110194

bls.gov All other item stratum index series were calculated using a geometric means estimator. Let's see. Say, you spend $2000 on gas and $2000 on food in 2007. Then you spend $2700 on gas and $2100 on food in 2008, buying the same stuff. So, your actual expenses rose $800, or 20%. The Government calculated CPI multiplier is SQRT(2700*2100/2000/2000)=1.19, so your spending on food and gas increased $762 in 2008, according to the government CPI report. Get more products, and stuff gets even better. -g- Simple Math...

To: Giordano Bruno who wrote (93615)	4/16/2008 10:14:47 PM
From: Real Man	Read Replies (1) \| Respond to of 110194

Let's see. Simple math - it gets better with more stuff! Say, you spend $2000 on gas, $2000 on food, $2000 on computers, $2000 on clothing, $2000 on toilet paper, $2000 on consumer goods, $2000 on books in 2007. Then you spend $4000 on gas, $2040 on food, $1800 on computers, $1900 on clothing, $2020 on toilet paper, $1980 on consumer goods, and $2060 on books in 2008. Your expenses grew by $1800 in 2008 compared to 2007, or 12.86%. The Government calculates that your CPI increased 8.728%, so you spent $1221.92 more on those items in 2008 than you did in 2007. But, guess what? You are STILL $1800 short in 2008. So, you ain't gonna buy no new computers -ggg- And Yo, there is also hedonics - you spent $2000 on a new computer in 2007, then $2000 in 2008, but since the CPU speed is 20% faster, that 2008 computer now dropped in price to 1666, according to BLS. Did you request a refund at your Circuit city? <G> Now, why are commodities soaring and the dollar is dropping while the CPI is so low? Must be those darn hedge funds blowing another bubble!