As long as wages are not impacted there can be no inflation, just relative price adjustments. So sayeth the FED in published FED papers.

Hence inflation isn’t an issue and won’t be an issue, since there is about as much chance of big wage increases (and hence inflation according to the FEDs thinking) in this country as there is of Cheney voting for gun control.

See how easy it is when you are the FED. Just define the problem to your liking and hence problem solved. How else do you think the FED justified keeping interest rates so low when housing, energy and food were going nuts. That’s right you just define inflation without those nasty things. PRoblem solved.

It’s all so simple, but some people just don’t have the ability to grasp the finer points of the FEDs job. So be it.

“Rootless_cosmopolitan would disagree with me though because it would effectively harm living in his luxurious Manhattan apartment”

Actually, I am renting and the housing is subsidized. With my income in academia, I haven’t been able to afford to buy any apartment in Manhattan so far. If my apartment weren’t subsidized I even couldn’t afford to rent in Manhattan, except in Harlem or Washington Heights. I wish prices came down in Manhattan. Why do you think I am heavily into trading the stock market? Because I need money. As much as possible, as quickly as possible.

rc

The following shows the bull/bear ratio:

http://www.market-harmonics.com/free-charts/sentiment/investors_intelligence.htm

It only goes back to June of 2005, but the point is that one should consider the RATIO, in addition to the % bulls.

I don’t think that stockcharts.com has “II Bulls” data at all, do they?

with bubbles

or helicopter

I’m really not that smart but I read a ton and I have a very good memory. I have some really good ideas about the market from time to time but most of the ideas that have made me the most money came from someone else. I really have no problem saying that either.