Comments on: The Inflation Factor http://www.ritholtz.com/blog/2008/12/the-inflation-factor/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 12:43:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Barry Ritholtz http://www.ritholtz.com/blog/2008/12/the-inflation-factor/comment-page-1/#comment-141899 Barry Ritholtz Tue, 27 Jan 2009 12:35:11 +0000 http://www.ritholtz.com/blog/?p=13029#comment-141899 As I have pointed out int he past, Technology prices dropping has less to do with inflation and more to due with adoption cycles . . . As I have pointed out int he past, Technology prices dropping has less to do with inflation and more to due with adoption cycles . . .

]]> By: Scott F http://www.ritholtz.com/blog/2008/12/the-inflation-factor/comment-page-1/#comment-141894 Scott F Tue, 27 Jan 2009 11:02:55 +0000 http://www.ritholtz.com/blog/?p=13029#comment-141894 1. At retail, Milk is still near $4 a gallon. 2, Gasoline is 1.838, according to eia http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html 3. You are presenting this info as if it was a straight line from 1.27 to 1.84, ignoring the enormous spike in prices, and the subsequent recession caused deflation. 1. At retail, Milk is still near $4 a gallon.

2, Gasoline is 1.838, according to eia
http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html

3. You are presenting this info as if it was a straight line from 1.27 to 1.84, ignoring the enormous spike in prices, and the subsequent recession caused deflation.

]]> By: cognos http://www.ritholtz.com/blog/2008/12/the-inflation-factor/comment-page-1/#comment-141888 cognos Tue, 27 Jan 2009 08:28:07 +0000 http://www.ritholtz.com/blog/?p=13029#comment-141888 How is this published on Dec 16th, 2008? I find it remarkable that in June 2008 (and for years before) inflation hawks constantly worried about impending inflation (oil, housing, food, metals, etc)... now, after 6 months of >30% deflation... AGAIN were supposed to all be worried about inflation?!? I spent a few minutes looking for historical and current price information online. There is not a great source of this information, and we must remember that inflation is for the same good/experience. Starbucks is NOT inflation, thats wealth. Gasoline in 1984 was $1.27/gallon. Last week it averaged $1.68 Milk in 1984 was $2.00/gallon. Wholesale prices are moving under $1 today (prob = $2/gallon retail) Thats 24 years!!! I promise you computers, TVs, entertainment, technology and healthcare are all enormously negative on inflation (remember again, same quality good or service). "Healthcare? What?" -- you say. Yes, exactly. What does 1984-quality healthcare cost today? There are studies showing modern cholesterol lowering statins have more impact on longevity that all of previous heart surgery methods. In the convenience and with the low side effects of a pills. How does the price of that 1984 heart bypass look now? Howabout the age 67 heart attack? Grow up. Other people get wealthier, but this is not always inflation. How is this published on Dec 16th, 2008?

I find it remarkable that in June 2008 (and for years before) inflation hawks constantly worried about impending inflation (oil, housing, food, metals, etc)… now, after 6 months of >30% deflation… AGAIN were supposed to all be worried about inflation?!?

I spent a few minutes looking for historical and current price information online. There is not a great source of this information, and we must remember that inflation is for the same good/experience.
Starbucks is NOT inflation, thats wealth.

Gasoline in 1984 was $1.27/gallon. Last week it averaged $1.68
Milk in 1984 was $2.00/gallon. Wholesale prices are moving under $1 today (prob = $2/gallon retail)

Thats 24 years!!!

I promise you computers, TVs, entertainment, technology and healthcare are all enormously negative on inflation (remember again, same quality good or service).

“Healthcare? What?” — you say. Yes, exactly. What does 1984-quality healthcare cost today? There are studies showing modern cholesterol lowering statins have more impact on longevity that all of previous heart surgery methods. In the convenience and with the low side effects of a pills. How does the price of that 1984 heart bypass look now? Howabout the age 67 heart attack?

Grow up. Other people get wealthier, but this is not always inflation.

]]> By: Pat G. http://www.ritholtz.com/blog/2008/12/the-inflation-factor/comment-page-1/#comment-133974 Pat G. Wed, 17 Dec 2008 00:37:12 +0000 http://www.ritholtz.com/blog/?p=13029#comment-133974 leftback: It does if capital preservation is your goal not capital gains. The problem is that when you sell Treasuries you get the USD. You can't trade them directly for precious metals. leftback:

It does if capital preservation is your goal not capital gains. The problem is that when you sell Treasuries you get the USD. You can’t trade them directly for precious metals.

]]> By: leftback http://www.ritholtz.com/blog/2008/12/the-inflation-factor/comment-page-1/#comment-133799 leftback Tue, 16 Dec 2008 18:23:57 +0000 http://www.ritholtz.com/blog/?p=13029#comment-133799 Sure makes the 30-year Treasury look like a bargain, doesn't it...??? (NOT) Sure makes the 30-year Treasury look like a bargain, doesn’t it…??? (NOT)

]]> By: John Borchers http://www.ritholtz.com/blog/2008/12/the-inflation-factor/comment-page-1/#comment-133767 John Borchers Tue, 16 Dec 2008 16:38:41 +0000 http://www.ritholtz.com/blog/?p=13029#comment-133767 The chart showing inflation is bad against non-inflation is not exactly correct. If a penny saved is a penny earned, even many years later gov't systems can not support themselves indefinately. The chart showing inflation is bad against non-inflation is not exactly correct. If a penny saved is a penny earned, even many years later gov’t systems can not support themselves indefinately.

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