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.

Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (487163)	5/15/2012 9:57:24 AM
From: alanrs	Read Replies (1) \| Respond to of 793549

Hard to tell. It depends on how much bad debt they are still carrying, an unknown as long as mark to market is suspended. If the banks loose a few trillions in the derivatives arena or this goes on long enough that houses deteriorate to the point of a special trash pickup, the billions they are sitting on won't cover it. Maybe that's why they are sitting on it, they've (the banks) got a rough idea of what the losses might be. They have to by now, they're not incompetent or stupid. And it's a good deal getting money from the Fed at 0.1% (or from you and me at 0.5%) and loaning it to the government for 1.8%. A decent port in a storm. ARS

To: LindyBill who wrote (487163)	5/15/2012 10:07:30 AM
From: DMaA	Respond to of 793549

And high unemployment is scaring people out of asking for raises.

To: LindyBill who wrote (487163)

5/15/2012 11:34:07 AM

From: MulhollandDrive

1 Recommendation Respond to of 793549

i don't know, bill.....while we're nowhere close to the huge inflation of the late 70's and early 80's , according to shadowstats, we're hovering around 6% right now....your point about the banks sitting on the money is also a contributing factor, and why not? the demand isn't really there....so the so called 'transmission' part of the economic engine is stuck in low gear....

if you overlay charts of the prices of food and energy, the price spikes coincided almost precisely with bernanke's quantitative easy (along with stocks)

Alternate Inflation Charts The CPI chart on the home page reflects our estimate of inflation for today as if it were calculated the same way it was in 1990. The CPI on the Alternate Data Series tab here reflects the CPI as if it were calculated using the methodologies in place in 1980. In general terms, methodological shifts in government reporting have depressed reported inflation, moving the concept of the CPI away from being a measure of the cost of living needed to maintain a constant standard of living.

Further definition is provided in our CPI Glossary. Further background on the SGS-Alternate CPI series is available in the Archives in the August 2006 SGS newsletter.

CPI Data Series

(Subscription required.) View Download Excel CSV File Last Updated: May 15th, 2012

CPI Year-to-Year Growth

The CPI-U (consumer price index) is the broadest measure of consumer price inflation for goods and services published by the Bureau of Labor Statistics (BLS).

While the headline number usually is the seasonally-adjusted month-to-month change, the formal CPI is reported on a not-seasonally-adjusted basis, with annual inflation measured in terms of year-to-year percent change in the price index.

In the charts to the right we show two SGS-Alternate CPI estimates: One based on the pre-1990 official methodology for computing the CPI-U, and the other based on the methodology which was employed prior to 1980.

Please note: Our Data Download is currently only providing the 1980-Based numbers, but 1990-Based numbers will be introduced shortly.

To: LindyBill who wrote (487163)	5/15/2012 11:59:13 AM
From: Little Joe	Respond to of 793549

Well I don't think that will happen until and unless the velocity of money improves. research.stlouisfed.org Also, forced debt liquidation is a counter balance. lj