Round O Blog
Macroblog's Dr. David interprets a Q & A with Alan Binder regarding the function and roles of central banks.
Dr. James at Econbrowser examines the historical correlation between crude & natural gas, aptly pointing out that Crude should be priced at 6 times Natural Gas, but it isn't.
Big Picture Barry offers Hypocrites, Inflation, Housing..
Over the past few years, as inflation built up a full head of steam, we have warned -- repeatedly -- that CPI grossly understated inflation due to the Owner's Equivalent Rent.
Now, a selective group of shills and montebanks are coming out of the woodwork to proclaim -- once again -- that there is no inflation, due to OER.
and Blame Derivatives? Where derivatives are blamed for the recent global selloff and Barry muses...
Whenever I am asked how on Earth Dow 6,800 is remotely possible, I give two answers: 1.) Forced selling leads to irrational market levels; 2.Nasdaq 1,100 was similarly unthinkable.
Mike Shedlock offers The Ostrich of Omaha, a missive wherin Buffet, Hussman and Richebacher are prominent. Mish quotes Richebacher and we agree this time is different, its worse:
Forecasts for the world economy are generally optimistic in the expectation that the U.S. economy will continue its global pull with continuous strong growth. We think the anemic and extremely unbalanced U.S. economic recovery is in its last gasp.
Our key consideration is that the U.S. economy has become perilously addicted to asset inflation in general and the housing bubble in particular. Both rising asset prices and the rising dollar had their foundation in carry trade of astronomic scale.
While interest rates may still appear rather low compared with the inflation rates, the Fed’s rate hikes have pulled the rug from under the dollar-based carry trade.
Dr. James at Econbrowser examines the historical correlation between crude & natural gas, aptly pointing out that Crude should be priced at 6 times Natural Gas, but it isn't.
Big Picture Barry offers Hypocrites, Inflation, Housing..
Over the past few years, as inflation built up a full head of steam, we have warned -- repeatedly -- that CPI grossly understated inflation due to the Owner's Equivalent Rent.
Now, a selective group of shills and montebanks are coming out of the woodwork to proclaim -- once again -- that there is no inflation, due to OER.
and Blame Derivatives? Where derivatives are blamed for the recent global selloff and Barry muses...
Whenever I am asked how on Earth Dow 6,800 is remotely possible, I give two answers: 1.) Forced selling leads to irrational market levels; 2.Nasdaq 1,100 was similarly unthinkable.
Mike Shedlock offers The Ostrich of Omaha, a missive wherin Buffet, Hussman and Richebacher are prominent. Mish quotes Richebacher and we agree this time is different, its worse:
Forecasts for the world economy are generally optimistic in the expectation that the U.S. economy will continue its global pull with continuous strong growth. We think the anemic and extremely unbalanced U.S. economic recovery is in its last gasp.
Our key consideration is that the U.S. economy has become perilously addicted to asset inflation in general and the housing bubble in particular. Both rising asset prices and the rising dollar had their foundation in carry trade of astronomic scale.
While interest rates may still appear rather low compared with the inflation rates, the Fed’s rate hikes have pulled the rug from under the dollar-based carry trade.
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