Well, good Saturday morn to y’all. Its been a while since I posted a weekend linkfest, end of Summer vacation, and travellin and all.
Here’s a few items which have been on me mind recently:
• Interesting pair of charts from Rydex, looking at the history of secular markets. Fascinating stuff, it implies that we are early in a 10-15 cyclical period that won’t make much progress. However, even within cyclical markets (i.e., DJIA 1966 – 1982), there are still significant Bull and Bear moves.
• Except for Inflation, there’s no Inflation — To reach that awkward conclusion, you must engage in a sleight of hand . . . the trick is to back out all of the inflationary data from the CPI, and PPI. Voila! No inflation.!
• Some home-owners are saving big bucks with The 6 Percent Solution
(Hint: It ain’t good for Real Estate Agents)
• Gasoline Futures have returned to Pre-Katrina levels; why then, haven’t your local gasoline prices?
• Amongst all the Katrina related mayhem, a Census report slipped out. While the rise in poverty made front page news, almost unnoticed were two facts: the Middle class is shrinking, and the Ultra-Wealthy conitnue to grow wildly: The Disconnect and Economic Classes
• A pre-Katrina Manpower survey finds "Employers remain cautious about hiring."
• A thought provoking financial blog: THE CUNNING REALIST
So let me make sure I completely understand this: If we back out all of the inflationary data from the CPI, and PPI, there is, um, no inflation?
Thanks for clarifying that.
While the Dismal Set — and the majority of CNBC guests — continue to spout such foolish nonsense, its nice to see that at least the WSJ wasn’t bamboozeled. Their online headline read: Consumer Prices Climb 0.5%
"Gasoline prices shot up 8.3%, the biggest increase since February 2003.
Food prices, however, were unchanged for the first time in nine months.
Medical-care prices were unchanged after nearly 30 years of increases.
Housing prices grew more slowly in August, falling to a 0.2% rate from
0.4% in July. Automobile prices fell 0.5%, half the rate of decline
recorded in July."
You can see more from the dismal set below . . .
UPDATE I: September 16, 2005 10:54 am
Its the ultimate Hedonic adjustment: Chart of the Day shows us graphically that without the items that are going up in price, there is hardly any inflation at all!
UPDATE II: September 17, 2005 11:54 am
The first official chart from the weekend WSJ:
UPDATE III: September 24, 2005 2:54 pm
Here’s a round up of all our recent discussions on inflation
Consumer Prices Climb 0.5%
Katrina Helps Propel Jobless Claims
To Highest Level in Nearly 10 Years
WALL STREET JOURNAL, September 15, 2005 5:44 p.m.