HARM

Let's Have Inflation

<i>I'm not saying you're wrong, but let's remember that all of the "prudent people who have been doing the right thing all along" also suffer as real estate values decline. The only true winners in such a scenario are those who rent their homes.</i>

Wrong. If you did not "lever up", HELOC or cash-out refi to the sky or recklessly speculate, you will not be hurt at all. In fact, those 30% or so of American families that own their homes outright will actually BENEFIT from falling prices in the form of lower property tax bills. Existing prudent owners will also benefit from the fact that, when they need to move, their NEXT home will cost much less, and they will not have to compete with NINJA Option-ARM armed speculators.

No "Detector" in BS --just BS.

FOMC August 5 Minutes Review: Inflation Debate Rages

So... the Fed *might* decide at some unnanounced time in the future to raise interest rates from 2% (which would be NEGATIVE 7% measured using the pre-Clinton era CPI) to a whopping 2.25%. www.shadowstats.com/

Whoopeeee!! Break out the champagne, wage earners! Your purchasing power and savings may get a marginally smaller ass-whooping next year! Time to partaay...

Peak Theory, Applied To Inflation

<i>Right now we are entering a disinflationary period as shown by real estate , autos , electronics and finally commodities --all tanking.</i>

I don't know what alternate universe you're living in CLH, but the price trend for most basic commodities --other than housing-- is *still* way up YoY, despite the recent drawback in oil & precious metals. A 25% cut over a few weeks doesn't erase a 100%+ gain from the rest of the year.

Peak Theory, Applied To Inflation

True "Inflation" (as measured by the pre-Clinton CPI) is currently running ~13%, if not higher.

www.pcasd.com/the_impa...
www.shadowstats.com/al...

Despite all protests to the contrary the Fed does not "care" about high inflation or negative real interest rates. In fact, it's job is to *ensure* negative real interest rates right now, so that Wall Street's well connected speculators can be bailed out. Monetize bigwig losses using Main Street's CDs, MMs and savings accounts --while commodities go through the roof-- is the Fed's true unspoken mandate.

Q: How do you know when the Fed Chairman is lying?
A: His lips are moving.